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Shipping the Good Apples Out? An Empirical Confirmation of the Alchian‐Allen Conjecture

Datos Bibliográficos

ID10176844
AutoresDavid Hummels (0000-0002-0280-8260, National Bureau of Economic Research), Alexandre Skiba (0000-0002-5370-9115, Purdue University West Lafayette)
Año2004
Volumen112
Número6
Páginas1384-1402
Fecha de publicación2004-11-19
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaJournal of Political Economy (JOURNAL)
Identificadores de la revistaISSN: 0022-3808 • E-ISSN: 1537-534X
EditorialUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/422562
OpenAlexW2105360587
IdiomaEN
Citas recibidas80
Referencias citadas13

Alchian and Allen show that a per unit transactions cost lowers the relative price of, and raises the relative demand for, high‐quality goods. We extend their theory, deriving a relationship between per unit and ad valorem trade costs and the quality composition of trade. Detailed international trade data for many importers and exporters are used to test these predictions. Within a narrowly defined commodity classification, exporters charge destination‐varying prices that covary positively with shipping costs and negatively with tariffs. These results provide a clear rejection of the iceberg assumption on transportation costs and a strong confirmation of the classical Alchian‐Allen hypothesis. We show that these results cannot be explained by monopoly pricing‐to‐market behavior

Commodity · Conjecture · Econometrics · Economics · Microeconomics · Monopoly · Quality (philosophy · Relative price · Unit (ring theory · Consumer Market Behavior and Pricing · Global trade and economics · Mathematics · Merger and Competition Analysis

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Obras citantes distintas80
Citas por año3,81
Intervalo de citas2005 - 2026 (22)
Velocidad de citacióncurrent
Altamente citadoNo
Tipos de citaNeutras: 80
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