Econometrica Vol. 48 No. 2 1980
Aggregate Expected Consumer Surplus as a Welfare Index with an Application to Price Stabilization
Abstract
This paper presents necessary and sufficient conditions for the expected value of consumer surplus to correctly represent a consumer's preferences. A theorem characterizing utility functions which represent preferences over conditional probabilities is used to derive this. An application to price stabilization policy is presented.
- DOI
- 10.2307/1911105
- Volume
- 48
- Issue
- 2
- Pages
- 423
- Sources
- bibtex:phds-export.bib openalex crossref