Author: Daniel F. SpulberPublisher:
ISBN:
Category :
Languages : en
Pages : 40
Book Description
Nonlinear Prices and Welfare
Author: Stanford University. Institute for Mathematical Studies in the Social SciencesPublisher:
ISBN:
Category :
Languages : en
Pages : 30
Book Description
Nonlinear Pricing, Advertising and Welfare
Author: Daniel F. SpulberNonlinear Pricing and the Selection of Welfare Weights
Author: Essays on Nonlinear Pricing and Welfare
Author: Tommy AnderssonPublisher:
ISBN:
Category : Nonlinear functional analysis
Languages : en
Pages : 127
Book Description
Evaluation Welfare with Nonlinear Prices
Author: Evaluating Welfare with Nonlinear Prices
Author: Peter Clemens ReissPublisher:
ISBN:
Category : Consumer protection
Languages : en
Pages : 28
Book Description
This paper examines how to evaluate consumer welfare when consumers face nonlinear prices. This problem arises in many settings, such as devising optimal pricing strategies for firms, assessing how price discrimination affects consumers, and evaluating the efficiency costs of many transfer programs in the public sector. We extend prior methods to accommodate a broad range of modern pricing practices, including menus of pricing plans. This analysis yields a simpler and more general technique for evaluating exact consumer surplus changes in settings where consumers face nonlinear prices. We illustrate our method using recent changes in mobile phone service plans.
Welfare Analysis of Non-linear Prices
Author: Padmanabhan SrinageshPublisher:
ISBN:
Category : Prices
Languages : en
Pages : 129
Book Description
Prices and Welfare
Author: Abdelkrim AraarPublisher:
ISBN:
Category : Prices
Languages : en
Pages : 72
Book Description
What is the welfare effect of a price change? This simple question is one of the most relevant and controversial questions in microeconomic theory and its different answers can lead to severe heterogeneity in empirical results. This paper returns to this question with the objective of providing a general framework for the use of theoretical contributions in empirical works, with a particular focus on poor people and poor countries. Welfare measures (such as Equivalent Variation or Consumer's Surplus) and computational methods (such as Taylor's approximations or the Vartia method) are compared to test how these choices result in different welfare measurement under different price shock scenarios. As a rule of thumb and irrespective of parameter choices, welfare measures converge to approximately the same result for price changes below 10 percent. Above this threshold, these measures start to diverge significantly. Budget shares play an important role in explaining such divergence, whereas the choice of demand system has a minor role. Under standard utility assumptions, the Laspeyers and Paasche variations are always the outer bounds of welfare estimates and consumer surplus is always the median estimate. The paper also introduces a new simple welfare approximation, clarifies the relation between Taylor's approximations and the income and substitution effects, and provides an example for treating nonlinear pricing. Stata codes for all computations are provided in annex.
Prices and Welfare
Author: Abdelkrim AraarPublisher: Springer
ISBN: 3030174239
Category : Business & Economics
Languages : en
Pages : 98
Book Description
This book provides a general framework for the use of theoretical contributions in empirical works, addressing the question of what is the effect of a price change on household well-being. This simple question is one of the most relevant and controversial questions in microeconomic theory and one of the main sources of errors in empirical economics. In particular, this book aims to 1) Review the essential microeconomics literature since the first seminal papers by Hicks in the 1930s; 2) Organize and simplify this literature in a way that can be easily used by analysts with different backgrounds providing algebraic, geometric and computational illustrations; 3) identify and measure the essential differences across methods and test how these differences affect empirical results; 4) Provide guidelines for the use of alternative approaches under imperfect information on utility, demand systems, elasticities and more generally incomes and quantities; 5) Provide computational codes in Stata for the application of all methods. The focus of the book is on developing economies and the poor, and the assumptions made will relate primarily to these countries and group of people, presumably the main policy focus of international organizations and national governments.
The Welfare Performance of Sequential Pricing Mechanisms
Author: Eugenio J. MiravetePublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Consumers are commonly required to subscribe to particular tariff options before uncertainty regarding their future purchases gets resolved. Since the general comparison of welfare performance of different pricing mechanisms is ambiguous, this article empirically evaluates the expected welfare associated with standard nonlinear pricing and optional tariffs by using information directly linked to the type of individual consumers. Results show that tariffs composed of nonlinear options do not necessarily outperform simpler pricing strategies in terms of expected profits. Furthermore, evidence suggests that a menu of optional two-part tariffs dominates any other pricing strategy from an expected welfare perspective.