Consumer's Surplus and Price Uncertainty
研究预期等价变差在何种条件下能正确排序稳定与不确定的价格情形，发现它可从序数偏好中恢复，并为风险厌恶消费者提供福利下界，适用于应用福利分析。
This paper investigates the conditions under which expected equivalent variation provides a correct ranking of stabilized and uncertain price situations. Expected equivalent variation can be recovered from ordinal preferences whereas ex ante equivalent variation requires additional information regarding con sumer attitudes toward income risk. The two measures are equal for income risk-neutral consumers. More important for applied welfare analysis where income risk aversion is presumed, expected equivalent variation provides a lower bound for ex ante equivalent variation. These two features of expected equivalent variation commend it as a viable welfare measure for applied work. Copyright 1987 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.