Testing the Alchian-Allen Theorem: A Study of Consumer Behavior in the Gasoline Market

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Robert Lawson; Lauren Raymer;
  • Journal: Economics Bulletin, volume 4, issue 35, pages 1-6
  • Subject: Alchian-Allen Theorem
    • jel: jel:D0

This paper uses a data set of daily sales at a single gasoline station over a seven year period to determine if consumers respond to relative price changes among the three grades of gasoline. Based on the reasoning of Alchian and Allen (1964) and Barzel (1976), market s... View more
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