»Consumer and Producer Surplus

Economics ◽  
2006 ◽  
pp. 135-159
Author(s):  
Paul Krugman ◽  
Robin Wells
Keyword(s):  
Producer Surplus

scholarly journals Effects of Serbian accession to the European Union

2012 ◽  
Vol 59 (3) ◽  
pp. 355-367 ◽  
Author(s):  
Mario Holzner ◽  
Valentina Ivanic
Keyword(s):  
Trade Liberalization ◽  
Consumer Surplus ◽  
The European Union ◽  
Policy Changes ◽  
Eu Accession ◽  
Consumer Prices ◽  
The World ◽  
Producer Surplus ◽  
The One ◽  
The Eu

In this article, the global simulation model (GSIM) of Joseph F. Francois and Keith H. Hall (2009) for analyzing global, regional, and unilateral trade policy changes was applied to Serbia. This was to measure the effects of full trade liberalization with the EU after Serbian accession to the EU. As anticipated, most of the changes in welfare after full liberalization of trade between Serbia and EU can be expected in sectors where Serbia has specialized; protection against imports from the EU is strong. However, losses could also occur in sectors that currently face strong protection against the rest of the world and this protection is lost after EU accession. Trade liberalization will lead to a substantial loss of tariff revenues. Reduced consumer prices might, on the one hand increase consumer surplus but on the other hand decrease producer surplus and output in certain industries.

The Sustainable Forestry Initiative’s impact on stumpage markets in the US South

2005 ◽  
Vol 35 (8) ◽  
pp. 2056-2064 ◽  
Author(s):  
Roger Brown ◽  
Daowei Zhang
Keyword(s):  
Consumer Surplus ◽  
Sustainable Forestry ◽  
Consumer Welfare ◽  
Us South ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
The Us ◽  
Producer Surplus ◽  
Nonindustrial Private Forest ◽  
Displacement Model

Using survey data and an equilibrium displacement model, we estimate the market and economic impacts of the American Forest and Paper Association's Sustainable Forestry Initiative (SFI) on stumpage markets in the US South. We examine four timber product markets: softwood pulpwood, softwood sawtimber, hardwood pulpwood, and hardwood sawtimber. In each market we calculate changes in producer and consumer welfare using the equilibrium displacement model that accounts for reductions in timber inventories caused by SFI compliance. We find that SFI compliance costs the US South's economy about $36 million annually. SFI-compliant stumpage producers lose more than $33 million each year in producer surplus as a result of SFI compliance, and consumers lose about $12 million annually in consumer surplus due to higher product prices. These costs are offset partially by benefits to nonindustrial private forest producers, non-SFI-compliant industry producers, and public forest producers, who collectively gain about $10 million in producer surplus annually as a result of higher stumpage prices.

1. Introduction to Competition Law

2019 ◽  
pp. 1-74
Author(s):  
Alison Jones ◽  
Brenda Sufrin ◽  
Niamh Dunne
Keyword(s):  
Economies Of Scale ◽  
Competition Law ◽  
Consumer Welfare ◽  
Perfect Competition ◽  
Competition Analysis ◽  
Elasticity Of Demand ◽  
Eu Competition Law ◽  
Demand Curves ◽  
Producer Surplus ◽  
Total Welfare

This chapter provides an introduction to, and basis for, the material discussed in the subsequent chapters. It introduces some relevant concepts of microeconomics including demand curves, consumer and producer surplus, elasticity of demand, and economies of scale and scope. It discusses the model of perfect competition and the concepts of allocative, productive and dynamic efficiency; the problems in competition terms of monopoly and oligopoly; and the concept of welfare, particularly consumer welfare and total welfare. It considers various schools of competition analysis and theories and concepts relevant to competition law. It discusses the possible objectives of competition law, and particularly considers what objectives are pursued by EU competition law. The chapter also looks at US antitrust law; competition law and the digital economy; competition law and regulation; and at some basic issues in the application of EU competition law.

scholarly journals Refrigeration and the Reduction of the Takeoff Rate of Bushmeat

SAGE Open ◽  
2017 ◽  
Vol 7 (1) ◽  
pp. 215824401668417
Author(s):  
Andrew J. Buck ◽  
Tavor Tchai ◽  
Uriel Spiegel ◽  
Wayne A. Morra
Keyword(s):  
Developing World ◽  
Third Party ◽  
Economic Welfare ◽  
Luxury Good ◽  
Third Party Intervention ◽  
Market Participants ◽  
Downward Pressure ◽  
Producer Surplus ◽  
Carry Over ◽  
Period Model

Rising incomes in the developing world has led to increased consumption of bushmeat as a luxury good with a mounting risk of species extirpation. In a two-period model with stochastic supply, this article shows that the simple expedient of introducing refrigeration to the bushmeat markets can lead to the reduction of harvest rates. In the absence of refrigeration, all bushmeat brought to the market must be sold immediately, putting downward pressure on price and sending the incorrect signal to hunters that everything they kill can and will be sold. With refrigeration, it is possible to carry over inventory from one period to the next, which in turn limits harvests. Although harvest rates fall unequivocally, there may be no incentive for market participants to introduce refrigeration. This last result is explained through the use of the economists’ notion of economic welfare as measured by consumer and producer surplus. Achieving the socially desirable goal of lower harvest rates may require third-party intervention in the market.

PP170 Quantifying the Life-Cycle Value of Second Generation Antipsychotics

2019 ◽  
Vol 35 (S1) ◽  
pp. 69-69
Author(s):  
Mikel Berdud ◽  
Niklas Wallin-Bernhardsson ◽  
Bernarda Zamora ◽  
Peter Lindgren ◽  
Adrian Towse
Keyword(s):  
Life Cycle ◽  
Cost Effectiveness ◽  
Consumer Surplus ◽  
Value Added ◽  
Dynamic Nature ◽  
Patent Expiration ◽  
Total Surplus ◽  
Long Run ◽  
Second Generation Antipsychotics ◽  
Producer Surplus

IntroductionWe estimate the life-cycle value of risperidone – Second-Generation Antipsychotics (SGA) – to balance the view that cost per Quality-Adjusted Life Year (QALY) estimates at launch are enough to guide access decisions. Study results will also drive discussion on access and price to recognize the dynamic nature of pharmaceutical pricing over the long-run.MethodsWe estimated number of patients treated for schizophrenia with risperidone in Sweden and the United Kingdom (UK) between 1994-2017 based on usage data form national statistics and volume sales data from IQVIA. We collected data from literature on the effectiveness (QALYs) and costs (EUR 2017) of risperidone (SGA) and haloperidol – First-Generation antipsychotic (FGA). We estimate the life-cycle value added by risperidone versus haloperidol, and the life-cycle distribution of the social surplus between the payer (consumer surplus) and the innovator (producer surplus).ResultsWe estimated the consumer surplus, the producer surplus, the Net Monetary Benefit (NMB) and Incremental Cost-Effectiveness Ratio (ICER) at each year and in aggregate terms (1993-2017). For the UK the producer surplus was ~28 percent out of the total surplus before patent expiration and five percent after patent expiration. In Sweden, producer surplus was around 6 percent out of the total surplus before patent expiration and one percent thereafter. In both countries, during the life-cycle of risperidone, the NMB per patient increased and the ICER decreased as a response to: (i) the launch of Risperidone Long-Acting Injectable (RLAI); and (ii) the generic entry.ConclusionsThe value added by risperidone increased during the life-cycle due to the launch of RLAI and the generic competition. This suggests that, considering the entire life-cycle, the value added by SGAs to the system is higher than the expected value estimated using cost-effectiveness analysis at launch. Pricing and reimbursement decisions should take into account the dynamic nature of pharmaceutical markets and the value added by innovative medicines over the long-run.

scholarly journals New Varieties and the Returns to Commodity Promotion: The Case of Fuji Apples

2000 ◽  
Vol 29 (1) ◽  
pp. 10-23 ◽  
Author(s):  
Timothy J. Richards ◽  
Paul M. Patterson
Keyword(s):  
Positive Impact ◽  
Consumer Experience ◽  
Consumer Learning ◽  
Apple Variety ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Producer Surplus ◽  
New Varieties ◽  
Fuji Apple ◽  
Displacement Model

The Fuji apple variety is relatively new in the U.S. As a new product, questions concern the relative impact of consumer learning by experience, by variety-specific promotion, or by generic apple promotion. A two-stage (LES/LAIDS) model incorporating both types of promotion is used to estimate the effect of generic and variety specific promotion, as well as consumer experience, on the demand for Fuji apples. Estimates show each to have a positive impact, and also show new or specialty apple varieties to be relatively price inelastic, but income elastic. Grower returns to promotion are calculated with an equilibrium displacement model of price changes and producer surplus. Changes in producer surplus provide a base-scenario benefit:cost ratio of 6.33:1.

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