Expected Consumer s Surplus as an Approximate Welfare Measure


JEL Classiications Keywords Willig (1976) argues that the change in consumerrs surplus is often a good approximation to the willingness to pay for a price change: if the income elasticity of demand is small, or the price change is small, then the percentage error from using consumerrs surplus is small. If the price of a good is random, then the change in… (More)


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