Some Evidence on the Alchian and Allen Theorem: The Third Law of Demand?

Eric P Bertonazzi, Michael Maloney and Robert McCormick

Economic Inquiry, 1993, vol. 31, issue 3, 383-93

Abstract: This paper examines empirically the proposition of Armen Alchian and William Allen (1964) that shipping charges induce consumers to opt for higher quality goods. The authors show, in a household productions framework, why this holds whether goods or buyers travel. Using a large sample of individual consumption data for football games, they find that buyers who travel the farthest, purchase the best tickets. In the end, the authors believe that the Alchian and Allen theorem is so broad and pervasive that it qualifies as the third law of demand. Copyright 1993 by Oxford University Press.

Date: 1993
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ecinqu:v:31:y:1993:i:3:p:383-93

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Economic Inquiry is currently edited by Preston McAfee

More articles in Economic Inquiry from Western Economic Association International Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().