Consumer Theory

9/11/2011

Agenda
category Overview Consumer Surplus

What To Take Away

The Structure of the Course
todays lecture Introduction to Markets

Consumers and Producers

Consumer Theory and Demand doubtfulness Technology and Production

Microeconomics

Perfect competition Monopoly and Pricing strategies

Market Interaction

bouncing Theory

Competitive Strategy
Auctions Information in Markets and Agency

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9/11/2011

Agenda
Course Overview Consumer Surplus

What To Take Away

Consumer surplus
? So cold we have discussed how a consumer behaves chthonian different market conditions. In this sense, our analysis so far has been positive (behavioral). ? In some instances we would also like to perform a normative analysis: We would like to know if sure policies, or general changes in the economic environment, are dear(p) for consumers or not. ? Taking an individual(a) consumer it would in principle be easy to assess whether the consumer is made better off or worse off by a given form _or_ system of government: if his utility has increased as a result of implementing the polity the consumer is certainly made better off. In particular we followed this entree when looking at the impact of rationing in the gun market.





? In many instances, however, this is not enough. We maybe interested in performing a cost-benefit analysis of a particular insurance where the benefit of the policy may come from raising the offbeat of the consumer or the cost comes from reducing it. In this sense we pick out a measure of how much better off (or worse-off) is a consumer made by the introduction of policy.

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Consumer surplus
? unrivalled maybe tempted to measure the change in the well-being of an individual by looking at the difference in his utility as a result of the policy. Why is this a high-risk idea? ? Indeed, utility only provides a ranking of the options available to a consumer. In particular, multiplying the utility function by a positive number would...If you want to get a wide-cut essay, order it on our website: Ordercustompaper.com



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