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The uncertain moral context of price changes

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  • Freitas, Luiz
  • Wagner, Jeffrey

Abstract

The purpose of this paper is to motivate a microeconomic model of consumption in which there is uncertainty that is not resolved ex post regarding the moral context of price changes. We show that neoclassical microeconomic theory can yield a result in which expected utility falls when a consumer who is sufficiently concerned for the uncertain moral context of production is faced with a falling price.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 68 (2009)
Issue (Month): 4 (February)
Pages: 1100-1105

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Handle: RePEc:eee:ecolec:v:68:y:2009:i:4:p:1100-1105

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Web page: http://www.elsevier.com/locate/ecolecon

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