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On the geometry of the consumer's surplus line integral

Author

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  • Paolo Delle Site

    (University of Rome "La Sapienza")

Abstract

Consumer's surplus can be seen as a correct measure of the change in welfare under special conditions on the preferences of the consumer. The note addresses the question whether the intuitive appeal of the consumer''s surplus concept in the one-price change case extends into cases where several prices of inter-related goods change. An intuitively justified attribution of the change in welfare is conjectured. Sufficient conditions for this attribution to be exactly consistent with the geometry of the consumer''s surplus line integral are discussed.

Suggested Citation

  • Paolo Delle Site, 2008. "On the geometry of the consumer's surplus line integral," Economics Bulletin, AccessEcon, vol. 4(6), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07d60002
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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume4/EB-07D60002A.pdf
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    Cited by:

    1. Delle Site, Paolo & Salucci, Marco Valerio, 2013. "Transition choice probabilities and welfare analysis in random utility models with imperfect before–after correlation," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 215-242.
    2. Paolo Delle Site & André de Palma & Karim Kilani, 2021. "Consumers’ welfare and compensating variation: survey and mode choice application," THEMA Working Papers 2021-11, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

    More about this item

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics

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