I am familiar with various ways of measuring consumer surplus "on the blackboard" (Compensating Variation, Equivalent Variation and simply measuring from the ordinary demand curve). Im wondering however if there is a guide for measuring consumer surplus (or changes in consumer surplus) empirically.

Any assistance would be appreciated.


1 Answer 1


You actually measure it the same as when you do theory. To empirically estimate it you for example estimate how demand and supply curve look like and then its just literally calculated like you would do in theoretical model. That is it is the area under demand curve above market price.

A useful paper to read is the famous Cohen et al 'Uber paper'.


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