Shipping the Good Apples Out : A New Perspective

  title={Shipping the Good Apples Out : A New Perspective},
  author={Yoram Bauman},
  • Yoram Bauman
  • Published 2002
The Alchian and Allen substitution theorem posits that a per unit tax or shipping fee applied to similar goods will increase the relative consumption of the higher quality good. Originally formulated in Alchian and Allen’s 1964 textbook University Economics, the theorem is often called the “Shipping the Good Apples Out” theorem because of the empirical observation that supermarkets in apple-importing areas such as Indiana have a higher proportion of high quality apples (relative to low quality… CONTINUE READING

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