Consumer Surplus in the Dark
A growing body of evidence suggests that consumers are not fully informed about prices, contrary to a critical assumption of classical welfare analysis. We analyze a model in which consumers can vary in both their preferences and their information about prices. Given data on demand and the distribution of prices, we identify the set of possible values of the consumer surplus. Each surplus in this set can be rationalized with simple information structures and preferences. We extend the analysis to richer datasets and provide bounds on counterfactual demands.
Date: 11 February 2022, 14:15 (Friday, 4th week, Hilary 2022)
Venue: Seminar Room C or Join Zoom https://zoom.us/j/91802954429
Speaker: Colin Stewart (University of Toronto)
Organising department: Department of Economics
Part of: Nuffield Economic Theory Seminar
Booking required?: Not required
Audience: Members of the University only
Editor: Emma Heritage