Support for a Characteristics Approach: Evidence from the Market for Insecticides
A procedure is developed to test the principal prediction of characteristics theory: all products are priced to appear on a convex market opportunity frontier. The feasibility of this testing procedure is shown by its application to the U.S. insecticide market during each year between 1944 and 1987. Results provide the first empirical support for characteristics theory.
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Volume (Year): 27 (1994)
Issue (Month): 1 (February)
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