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Shipping the Good Apples Out: Another Proof with A Graphical Representation

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Author Info
Saito, Tetsuya

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Abstract

This paper provides a proof of Alchian and Allen’s thesis—superior good is relatively more consumed in distant market—with some restrictions on the utility function. Comparing to the proof by Borcherding and Silberberg (1978), those assumptions may restrict the model in some sense but we will find the Alchian-Allen theorem is independent of the third law of Hicks (Hicks 1946, pp. 309-311). The theorem is given by natural characteristics of relative demand curves.

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File URL: http://mpra.ub.uni-muenchen.de/1297/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1297.

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Date of creation: 01 Jan 2007
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Handle: RePEc:pra:mprapa:1297

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Related research
Keywords: Fixed transportation cost quality of goods relative demand Alchian-Allen theorem

Find related papers by JEL classification:
D00 - Microeconomics - - General - - - General
F19 - International Economics - - Trade - - - Other

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gould, John P & Segall, Joel, 1969. "The Substitution Effects of Transportation Costs," Journal of Political Economy, University of Chicago Press, vol. 77(1), pages 130-37, Jan./Feb.. [Downloadable!] (restricted)
  2. Bertonazzi, Eric P & Maloney, Michael T & McCormick, Robert E, 1993. "Some Evidence on the Alchian and Allen Theorem: The Third Law of Demand?," Economic Inquiry, Oxford University Press, vol. 31(3), pages 383-93, July.
  3. Borcherding, Thomas E & Silberberg, Eugene, 1978. "Shipping the Good Apples Out: The Alchian and Allen Theorem Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 86(1), pages 131-38, February. [Downloadable!] (restricted)
  4. Laura Razzolini & William F. Shughart & Robert D. Tollison, 2003. "On the Third Law of Demand," Economic Inquiry, Oxford University Press, vol. 41(2), pages 292-298, April. [Downloadable!] (restricted)
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This page was last updated on 2008-11-17.


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