While it is not surprising that collusion among firms would lead to higher profits in either setting, if demand is indeed affected by the total level of service provision then coordinated efforts regarding the services provided may enhance not only producer surplus
but consumer surplus as well.
If weaker copyright protection doesn't reduce quality, he writes, "policymakers thinking about the strength of copyright protection should supplement their attention to producer surplus
with concern for consumer surplus as well.
Most recently, she has applied the Sacramento PECAS model with the SACSIM model to evaluate the equity, consumer surplus, and producer surplus
of the Blueprint Plan for the Sacramento region.
We calculate the welfare effects in terms of consumer and producer surplus
Economists are well aware of the welfare implications of the market clearing solution; particularly, that the sum of consumer and producer surplus
is maximized at the point of market equilibrium.
The creation of welfare in the economy is defined as the consumer surplus plus the producer surplus
The stock of infrastructure is provided by a social planner who maximizes the sum of consumer and producer surplus
, net the cost of infrastructure capital.
4) Second, it can increase the producer surplus
or rents (5)
According to the authors, Ex post studies fall into two categories: a) consumer and producer surplus
analyses, estimating average returns to research, and b) production function analyses, estimating marginal rates of return to research.
1] may transform what in a competitive market would have been consumer surplus into producer surplus
(monopoly rents) and deadweight losses.
Before analyzing the effects of a specific tax, we must first introduce the concepts of consumer surplus, producer surplus
, and efficiency.
Particularly where export prices are exogenous it may be that the only surplus gain of a merger or commercial practice lies in producer surplus