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Aggregate Expected Consumer Surplus as a Welfare Index with an Application to Price Stabilization

Rogerson, William P. (1979) Aggregate Expected Consumer Surplus as a Welfare Index with an Application to Price Stabilization. Social Science Working Paper, 205. California Institute of Technology , Pasadena, CA. (Unpublished)

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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.

Item Type:Report or Paper (Working Paper)
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Additional Information:Revised. This paper was written when I was supported by National Science Foundation Grant Number S.O.C. 77-08573 to Robert H. Bates. I would like to acknowledge the extremely helpful assistance rendered me in writing this paper by Robert H. Bates, Robert Forsythe, Roger Noll, James Quirk, Louis Wilde, and two anonymous referees. Published as Rogerson, William P. "Aggregate expected consumer surplus as a welfare index with an application to price stabilization." Econometrica: Journal of the Econometric Society (1980): 423-436.
Group:Social Science Working Papers
Funding AgencyGrant Number
Subject Keywords:Consumer surplus, Random variables, Consumer prices, Sufficient conditions, Market prices, Consumer preferences, Expected utility, Consumer economics, Marginal utility, Mathematical constants
Series Name:Social Science Working Paper
Issue or Number:205
Record Number:CaltechAUTHORS:20171020-164339305
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:82561
Deposited By: Jacquelyn Bussone
Deposited On:24 Oct 2017 22:04
Last Modified:03 Oct 2019 18:55

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