The generalized Alchian-Allen theorem

The Alchian-Allen substitution theorem states that an increase of the prices of two similar goods by the same amount leads to a relative increase in the compensated demand of the more expensive good. In this paper we generalize this theorem to ordinary demand functions and show under which conditions the Alchian-Allen result continues to hold when income and endowment effects are taken into account.

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Year of publication:	2012
Authors:	Minagawa, Junichi ; Upmann, Thorsten
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	the Alchian-Allen theorem \| income and endowment effects

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Series:	CESifo Working Paper ; 3969
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	729068935 [GVK] hdl:10419/65851 [Handle]
Classification:	D11 - Consumer Economics: Theory
Source:	EconStor

Persistent link: https://www.econbiz.de/10010288877