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.
MLA
Rogerson, William P.. “Aggregate Expected Consumer Surplus as a Welfare Index with an Application to Price Stabilization.” Econometrica, vol. 48, .no 2, Econometric Society, 1980, pp. 423-436, https://www.jstor.org/stable/1911105
Chicago
Rogerson, William P.. “Aggregate Expected Consumer Surplus as a Welfare Index with an Application to Price Stabilization.” Econometrica, 48, .no 2, (Econometric Society: 1980), 423-436. https://www.jstor.org/stable/1911105
APA
Rogerson, W. P. (1980). Aggregate Expected Consumer Surplus as a Welfare Index with an Application to Price Stabilization. Econometrica, 48(2), 423-436. https://www.jstor.org/stable/1911105
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