EconPapers    
Economics at your fingertips  
 

A Note on Consumer Surplus and the Structure of Preferences

Paolo Bertoletti ()

No 130, DEM Working Papers Series from University of Pavia, Department of Economics and Management

Abstract: We represent quasi-linear preferences by the dual measure of consumer surplus, and investigate demand and the associated multiproduct pricing. In particular, we discuss the role of substitutability "within group" and with the outside commodity, deriving a Slutsky-like decomposition of the price effect. We use our results to show that Ramsey prices are proportional to marginal costs only if preferences are fully homothetic, and that commodities with larger outside substitutability have smaller Lerner indexes.

Keywords: Quasi-Linear Preferences; Homotheticity; Ramsey Pricing (search for similar items in EconPapers)
JEL-codes: D11 D43 D61 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2016-12
New Economics Papers: this item is included in nep-com and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://dem-web.unipv.it/web/docs/dipeco/quad/ps/RePEc/pav/demwpp/DEMWP0130.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pav:demwpp:demwp0130

Access Statistics for this paper

More papers in DEM Working Papers Series from University of Pavia, Department of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by Alice Albonico ().

 
Page updated 2022-01-22
Handle: RePEc:pav:demwpp:demwp0130