Authors
Citation
Ke. Mcconnell, CONSUMER SURPLUS FROM DISCRETE-CHOICE MODELS, Journal of environmental economics and management, 29(3), 1995, pp. 263-270
Citations number
8
Categorie Soggetti
Business,Economics,"Environmental Studies
Journal title
ISSN journal
00950696
Volume
29
Issue
3
Year of publication
1995
Part
1
Pages
263 - 270
Database
ISI
SICI code
0095-0696(1995)29:3<263:CSFDM>2.0.ZU;2-Q
Abstract
The budget-constrained random utility model (RUM) gives utility-consis
tent measures of welfare, but requires the length of the planning peri
od be specified. An alternative is to treat the RUM probabilities as;b
ehavioral and calculate consumer surplus. This paper shows that such c
alculations lead to the same welfare measures as RUM calculations. The
paper provides support and an alternative justification for the stand
ard welfare measured. (C) 1995 Academic Press, Inc.