TY - JOUR
T1 - Convergence theorems of willingness-to-pay and willingness-to-accept for nonmarket goods
AU - Miyake, Mitsunobu
N1 - Funding Information:
An earlier version of this paper was presented at the 7th International Meeting of the Society for Social Choice and Welfare at Osaka. I would like to thank an associate editor and a referee of this journal for their constructive comments and suggestions. I also thank Jiro Akita, Haruo Imai, and Akira Okada for helpful conversations. The research of this paper is partially supported by Ministry of Education, Science and Culture through JSPS Grant-in-Aids for Scientific Research No. 19530146 and No. 21530162. Open Access
PY - 2010
Y1 - 2010
N2 - This paper shows that the disparity between an agent's willingness-to-pay and willingness-to-accept for a nonmarket good becomes small and the two values converge to the same limit only if the agent's initial consumption level of the numéraire is large enough. A necessary and sufficient condition for convergences is provided, and a formula is provided to compute the limit value directly from a utility function. These convergence results are derived when the nonmarket goods are indivisible and qualitatively differentiated, and then extended for the divisible case.
AB - This paper shows that the disparity between an agent's willingness-to-pay and willingness-to-accept for a nonmarket good becomes small and the two values converge to the same limit only if the agent's initial consumption level of the numéraire is large enough. A necessary and sufficient condition for convergences is provided, and a formula is provided to compute the limit value directly from a utility function. These convergence results are derived when the nonmarket goods are indivisible and qualitatively differentiated, and then extended for the divisible case.
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U2 - 10.1007/s00355-009-0416-2
DO - 10.1007/s00355-009-0416-2
M3 - Article
AN - SCOPUS:77952545116
VL - 34
SP - 549
EP - 570
JO - Social Choice and Welfare
JF - Social Choice and Welfare
SN - 0176-1714
IS - 4
ER -