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- W237841230 abstract "For a conventional good, an increase in price reduces the consumer surplus of both those who no longer buy the good, and those who continue to buy it. If, however, consumers must spend real resources to obtain rights for he good, or if the quality depends on the number of other consumers trying to obtain the same good, then a price increase may have different effects. Both characteristics apply to congestible goods: a consumer's utility decreases in the price he pays and in the number of other persons who use the good. Some users may gain from a price increase which reduces demand. Therefore, even if the revenue is not returned to the users, their welfare can increase. The change in welfare appears to be particularly important in asessing the political popularity of road tolls. We inquire here into the conditions under which imposing a congestion toll will prove politically acceptable. Political acceptance, we suppose, is greater if consumer welfare increases even when the toll revenue is not returned to users." @default.
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- W237841230 date "1992-12-02" @default.
- W237841230 modified "2023-09-27" @default.
- W237841230 title "WHEN DO CONSUMERS FAVOR PRICE INCREASES: WITH APPLICATIONS TO CONGESTION AND TO REGULATION" @default.
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