Theorems

Some weeks ago, the WSJ's wine critics wrote about all the bad stuff being shipped from Australia to the U.S.

These past days, we have been in Australia and tasted wines that are (here goes) divine. And I find that many of my favorites are not available at the web sites of U.S. retailers that I am familiar with.

Tyler Cowen cites the Alchian-Allen theorem in his wonderful new book. The theorem says that regions will export their best stuff first and over the longest distances. Apparently not true. I guess it's that ceteris paribus thing. Some partial equilibrium stories work badly in a general equilibrium world where competing wines from hundreds of regions compete for limited shelf space -- even in the age of internet shopping. That's life.

If you can get anything from Cape Mentelle, grab some.