Beyond Apples-to-Apples: A Cross-Category Explanation of the Alchian–Allen Effect
Abstract
This paper develops a unified framework that extends the Alchian–Allen mechanism beyond the restrictive assumption of close substitutes. The framework emphasizes a fixed-cost selection mechanism in which logistics structures filter goods according to their ability to sustain profitable long-distance exchange. Empirical analysis uses high-dimensional U.S. import data from 2023 to 2025. The main quantitative evidence is presented at the HS2 level, consistent with the cross-category logic of the paper, while HS10 specifications and stricter sample definitions are used as robustness checks. The results yield two main findings. First, more distant trade flows exhibit significantly higher observed unit values at the HS2 level, indicating that the good-apples-shipped-out pattern operates not only within narrowly defined products but also across broad product categories. Second, the positive distance–unit-value relationship is stronger for observations involving air transport, especially in broader samples, consistent with the view that higher-cost transport channels impose a stricter selection filter. Overall, the findings support a cross-category interpretation of the Alchian–Allen mechanism and suggest that lower logistics and institutional fixed costs can broaden participation in long-distance trade. JEL Classifications: F10, F11, F14, D22, R40.
Citation Information
@article{jianding2026,
title={Beyond Apples-to-Apples: A Cross-Category Explanation of the Alchian–Allen Effect},
author={Jian Ding and Yixiao Zhou},
journal={Review of World Economics},
year={2026},
doi={https://doi.org/10.21203/rs.3.rs-9331302/v1}
}
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