The AlchianβAllen theorem and the law of
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Liqun Liu
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Article
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2011
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Elsevier Science
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English
β 228 KB
The Alchian-Allen theorem of ''shipping the good apples out'' (the AA theorem) is based on a law of relative demand which states that as the price ratio of one good to another becomes larger, the demand for the former good becomes smaller relative to the demand for the latter good. However, both the