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Perfect Substitutes: A Note On The Alchian-Allen Hypothesis

  • Vedrashko, Alexander
  • Smith, Vincent H.
Registered author(s):

    Alchian and Allen hypothesized that a country will export high rather than low quality goods. Here we show that if the inherent attributes of the commodities are identical the country will only export the high-quality good.

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    File URL: http://purl.umn.edu/29245
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    Paper provided by Montana State University, Department of Agricultural Economics and Economics in its series Trade Research Center Research Discussion Papers with number 29245.

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    Date of creation: 1998
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    Handle: RePEc:ags:motrdp:29245
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    1. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    2. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
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