Individual consumer surplus in the Edgeworth Box

2021 ◽  
Vol 20 (11) ◽  
pp. 2151-2167
Author(s):  
Sergei A. MOSKAL'ONOV
Keyword(s):  
Mathematical Theory ◽  
Consumer Surplus ◽  
Main Property ◽  
Indifference Curve ◽  
Exchange Economy ◽  
Reservation Price ◽  
Microeconomic Theory ◽  
Individual Consumer ◽  
Admissible Trajectory ◽  
Correct Measure

Subject. The consumer surplus conception is an important part of the modern microeconomic theory at the introductory and intermediate levels. Consumer surplus measures the change in the consumer’s real welfare. The article addresses the peculiarities of generation and the main property of the generalized individual consumer surplus, using the Edgeworth Box case. Objectives. The purpose is to find the main property of individual consumer surplus in the Edgeworth Box economy. Methods. The study draws on methods of logical and mathematical analysis. The generalized consumer surplus is correctly constructed, using the mathematical theory of curve integrals of the second type (the theory of line integrals in the Western mathematics). Results. The generalized individual consumer surplus is defined through the respective curve integral along some admissible trajectory in the simple exchange economy (Edgeworth Box). The paper also introduces the notion of the marginal individual consumer surplus, and demonstrates that consumer surplus is a correct individual welfare measure in the Edgeworth Box, and that consumer surplus is zero along any given indifference curve. I consider the numerical example of individual surplus calculation and presentation in the Edgeworth Box. Conclusions. The generalized individual consumer surplus is a correct measure of consumer’s utility change along monotone (weakly monotone) trajectories in the Edgeworth Box. Geometrically, the consumer surplus is presented as an area limited by the reservation price curve from the top and by the reallocation line (curve) from the bottom.

Relationships Between Grain Boundary Structure and Material Properties

1980 ◽  
Vol 38 ◽  
pp. 366-369
Author(s):  
Brian Ralph ◽  
Barlow Claire ◽  
Nicola Ecob
Keyword(s):  
Grain Boundary ◽  
Material Properties ◽  
Main Property ◽  
Grain Structure ◽  
Boundary Structure ◽  
Grain Boundary Structure ◽  
Property Changes

This brief review seeks to summarize some of the main property changes which may be induced by altering the grain structure of materials. Where appropriate an interpretation is given of these changes in terms of current theories of grain boundary structure, and some examples from current studies are presented at the end of this paper.

Finn Kydland and Edward Prescott: Driving Forces behind Economic Cycles (2004 Nobel Prize in Economics)

2005 ◽  
pp. 133-143 ◽  
Author(s):  
E. Balashova
Keyword(s):  
Nobel Prize ◽  
Driving Forces ◽  
Microeconomic Theory ◽  
Business Cycle Theory ◽  
Economic Cycles ◽  
Cyclical Fluctuations ◽  
Long Run ◽  
Time To Build ◽  
New Business ◽  
Extensive Research Program

The method of analyzing and modeling cyclical fluctuations of economy initiated by F. Kydland and E. Prescott - the 2004 Nobel Prize winners in Economics - is considered in the article. They proposed a new business cycle theory integrating the theory of long-run economic growth as well as the microeconomic theory of consumers and firms behavior. Simple version of general dynamic and stochastic macroeconomic model is described. The given approach which was formulated in their fundamental work "Time to Build and Aggregate Fluctuations" (1982) gave rise to an extensive research program and is still used as a basic instrument for investigating cyclical processes in economy nowadays.

A Mathematical Theory of Hints

1995 ◽  
Author(s):  
Jürg Kohlas ◽  
Paul-André Monney
Keyword(s):  
Mathematical Theory

The Factors Influencing Tourist Visitations Number in Curug Silawe

2019 ◽  
Vol 2 (3) ◽  
pp. 553-561
Author(s):  
Novian Hangga Prakosa ◽  
Fafurida Fafurida
Keyword(s):  
Economic Value ◽  
Consumer Surplus ◽  
Sampling Technique ◽  
Travel Cost ◽  
Analysis Tool ◽  
Literature Study ◽  
Factors Influencing ◽  
Negative Effect ◽  
Value Estimation ◽  
Positive Effect

The purposes of this research are to identify the influence of travel cost, income, distance, access, facilities, natural beautiness, and age on the number of individual visits to Curug Silawe and to estimate the economic value of Curug Silawe through individual travel cost method. The population in this study are tourists that visited Curug Silawe with sample of 98 respondents taken by the quota accidental sampling technique. The data collection method used are literature study and questionnaire. The analysis tool used are OLS linear regression and economic value estimation. The results showed the variables that influence the number of individual visits to Curug Silawe are income, distance and age. Income and age has a positive effect. While distance has a negative effect. The economic value of Curug Silawe reached IDR 1,109,930,140.48 per year. This value is obtained from consumer surplus obtained per individual per year of IDR 308,656.88. Tujuan dari penelitian ini adalah untuk mengidentifikasi pengaruh biaya perjalanan, pendapatan, jarak, akses, fasilitas, keindahan alam, dan usia pada jumlah kunjungan individu ke Curug Silawe dan untuk memperkirakan nilai ekonomi Curug Silawe melalui metode biaya perjalanan individu . Populasi dalam penelitian ini adalah wisatawan yang berkunjung ke Curug Silawe dengan sampel 98 responden yang diambil dengan teknik quota accidental sampling. Metode pengumpulan data yang digunakan adalah studi literatur dan kuesioner. Alat analisis yang digunakan adalah regresi linear OLS dan estimasi nilai ekonomi. Hasil penelitian menunjukkan variabel yang mempengaruhi jumlah kunjungan individu ke Curug Silawe adalah pendapatan, jarak dan usia. Penghasilan dan usia memiliki efek positif. Sedangkan jarak memiliki efek negatif. Nilai ekonomi Curug Silawe mencapai Rp1.109.930.140,48 per tahun. Nilai ini diperoleh dari surplus konsumen yang diperoleh per individu per tahun sebesar Rp308.656,88.

Assessment criteria for aggregate social welfare

2020 ◽  
Vol 19 (12) ◽  
pp. 2358-2371
Author(s):  
S.A. Moskal'onov
Keyword(s):  
Social Welfare ◽  
Mathematical Analysis ◽  
Exchange Economy ◽  
Assessment Criteria ◽  
Impossibility Theorem ◽  
New Approaches ◽  
History Of Development ◽  
Arrow's Impossibility Theorem ◽  
History Of

Subject. The article addresses the history of development and provides the criticism of existing criteria for aggregate social welfare (on the simple exchange economy (the Edgeworth box) case). Objectives. The purpose is to develop a unique classification of criteria to assess the aggregate social welfare. Methods. The study draws on methods of logical and mathematical analysis. Results. The paper considers strong, strict and weak versions of the Pareto, Kaldor, Hicks, Scitovsky, and Samuelson criteria, introduces the notion of equivalence and constructs orderings by Pareto, Kaldor, Hicks, Scitovsky, and Samuelson. The Pareto and Samuelson's criteria are transitive, however, not complete. The Kaldor, Hicks, Scitovsky citeria are not transitive in the general case. Conclusions. The lack of an ideal social welfare criterion is the consequence of the Arrow’s Impossibility Theorem, and of the group of impossibility theorems in economics. It is necessary to develop new approaches to the assessment of aggregate welfare.

Evaluation Opportunities in Mechanized Theories

10.29007/7kx8 ◽  
2018 ◽  
Author(s):  
Joe Hurd
Keyword(s):  
Mathematical Theory ◽  
Theorem Prover ◽  
Mechanized Mathematics ◽  
Reasoning Tasks

This invited talk will look at logic solvers through the application lens of constructing and processing a theory library of mechanized mathematics. In fact, constructing and processing theories are two distinct applications, and each will be considered in turn. Construction is carried out by formalizing a mathematical theory using an interactive theorem prover, and logic solvers can remove much of the drudgery by automating common reasoning tasks. At the theory library level, logic solvers can provide assistance with theory engineering tasks such as compressing theories, managing dependencies, and constructing new theories from reusable theory components.

Continuous Decisions

2020 ◽  
Author(s):  
Seng Bum Michael Yoo ◽  
Benjamin Hayden ◽  
John Pearson
Keyword(s):  
Decision Making ◽  
Control Theory ◽  
Hierarchical Structure ◽  
Action Planning ◽  
Extended Period ◽  
Microeconomic Theory ◽  
Engineering Control ◽  
Over Time ◽  
Academic Study

Humans and other animals evolved to make decisions that extend over time with continuous and ever-changing options. Nonetheless, the academic study of decision-making is mostly limited to the simple case of choice between two options. Here we advocate that the study of choice should expand to include continuous decisions. Continuous decisions, by our definition, involve a continuum of possible responses and take place over an extended period of time during which the response is continuously subject to modification. In most continuous decisions, the range of options can fluctuate and is affected by recent responses, making consideration of reciprocal feedback between choices and the environment essential. The study of continuous decisions raises new questions, such as how abstract processes of valuation and comparison are co-implemented with action planning and execution, how we simulate the large number of possible futures our choices lead to, and how our brains employ hierarchical structure to make choices more efficiently. While microeconomic theory has proven invaluable for discrete decisions, we propose that engineering control theory may serve as a better foundation for continuous ones. And while the concept of value has proven foundational for discrete decisions, goal states and policies may prove more useful for continuous ones.

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