《微观经济学》清华的大学课件 Ch14 Consumer’s Surplus.pptVIP

Chapter Fourteen;Monetary Measures of Gains-to-Trade;A: You would pay up to the dollar value of the gains-to-trade you would enjoy once in the market. How can such gains-to-trade be measured?;Three such measures are: Consumer’s Surplus Equivalent Variation, and Compensating Variation. Only in one special circumstance do these three measures coincide.;Suppose rice can be bought only in lumps of one kilogram. Use r1 to denote the most a single consumer would pay for a 1st kilogram -- call this her reservation price for the 1st kilogram. r1 is the dollar equivalent of the marginal utility of the 1st kilogram.;Now that she has one kilogram, use r2 to denote the most she would pay for a 2nd kilogram -- this is her reservation price for the 2nd kilogram. r2 is the dollar equivalent of the marginal utility of the 2nd gallon.;Generally, if she already has n-1 kilograms of rice then rn denotes the most she will pay for an nth kilogram. rn is the dollar equivalent of the marginal utility of the nth kilogram.;r1 + … + rn will therefore be the dollar equivalent of the total change to utility from acquiring n kilograms of rice at a price of $0. So r1 + … + rn - pGn will be the dollar equivalent of the total change to utility from acquiring n kilograms of rice at a price of $pG each.;A plot of r1, r2, … , rn, … against n is a reservation-price curve. This is not quite the same as the consumer’s demand curve for rice.;$ Equivalent Utility Gains;What is the monetary value of our consumer’s gain-to-trading in the rice market at a price of $pG?;The dollar equivalent net utility gain for the 1st kilogram is $(r1 - pG) and is $(r2 - pG) for the 2nd kilogram, and so on, so the dollar value of the gain-to-trade is $(r1 - pG) + $(r2 - pG) + …for as long as rn - pG 0.;$ Equivalent Utility Gains;$ Equivalent Utility Gains;Suppose rice can be purchased in any continuous quantity then ...;$ Equivalent Utility Gains;Unfortunately, estimating a consumer’s reservation-price curve is di