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O'Sullivan & Hilliard write: Consumer surplus is a "type of non-financial loss" and can be defined as the amount by which the particular plaintiff values performance of a particular obligation over and above its market value. This is identical to the economist's definition of consumer surplus. Using Pindyck and Rubinfeld's example: If a student was ...


Yes you're correct. Stigler's "Coase Theorem" merely asserts that if transaction costs are zero, then the initial allocation of rights will not affect the total size of the economic pie, but may affect the distribution of the pie. Two examples: Example 1. Profit > Damage. A producer $X$ producing widgets earns \$3 in profits but causes \$1 of ...


You can try Google Books Ngram Viewer. On the bottom of the graph, there is a Search in Google Books giving access to the references.


This may just be a semantic misunderstanding. The Law of Diminishing Marginal Utility (LDMU) does "affect" the price in the sense that it is responsible for the convexity of preferences, which in turn guarantees a well-defined price effect. The formulation "price effect = income effect + substitution effect" is just a short way of saying that the change in ...

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