Consumers' surplus when individuals lack integrated preferences: A development of some ideas from Dupuit.
In modern economics, consumers' surplus is understood as the sum of individuals' compensating variations, defined by reference to well-behaved preferences. If individuals lack integrated preferences, as behavioural economics suggests they often do, consumers' surplus cannot be defined. However, Dupu...
| Published in: | European Journal of the History of Economic Thought Vol. 22; no. 6; pp. 1042 - 1064 |
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| Format: | Article |
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Taylor & Francis Ltd
Dec2015
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| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=111336479&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 111336479 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 09672567 5B6 jtl: European Journal of the History of Economic Thought issn: 09672567 maglogo: N pubinfo: dt: Dec2015 vid: 22 iid: 6 pid: 377 pub: Taylor & Francis Ltd artinfo: ui: 111336479 10.1080/09672567.2015.1084522 ppf: 1042 ppct: 22 formats: tig: atl: Consumers' surplus when individuals lack integrated preferences: A development of some ideas from Dupuit. aug: au: Sugden, Robert su: Consumers' surplus Consumer preferences research Prices Demand function Dupuit, J. (Jules), 1804-1866 sug: subj: Consumers' surplus Consumer preferences research Prices Demand function Dupuit, J. (Jules), 1804-1866 keyword: Dupuit integrated preferences price discrimination ab: In modern economics, consumers' surplus is understood as the sum of individuals' compensating variations, defined by reference to well-behaved preferences. If individuals lack integrated preferences, as behavioural economics suggests they often do, consumers' surplus cannot be defined. However, Dupuit – the earliest theorist of consumers' surplus – did not assume integrated preferences. His concept of consumers' surplus can be interpreted in terms of the maximum yield of discriminatory prices. In principle, this can be measured without making assumptions about preferences, but (contrary to what Dupuit apparently thought) is not, in general, equal to the area under the observed demand curve. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 2015 holdings: @attributes: islocal: N |
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