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We show that the Alchian–Allen theorem holds in three‐good world. We empirically test the theorem by examining the relative demand for three quality‐differentiated coffee varieties sold globally and confirm that a common per‐unit charge increases the overall quality of coffee demanded. Our empirical specification employs the Poisson pseudo maximum likelihood method, which prevents sample selection...
This study examines price transmission asymmetries in Vidarbha's (India) cotton supply chain from 2002 to 2012. The analysis takes account of thresholds in price adjustments toward their long‐run equilibrium. The first stage considers the price dynamics between international and Indian domestic cotton prices. The second stage considers price transmission from domestic to farm gate cotton prices in...
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