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ToolsSugden, R. (2003) Coping with preference anomalies in cost-benefit analysis. pp. 1-35.
Full text not available from this repository. (Request a copy)Abstract
Economics conventionally assumes that preferences are coherent, i.e. stable, context-independent, and consistent with axioms of rationality. Since these assumptions underpin standard interpretations of cost-benefit analysis (CBA), preference 'anomalies' found in stated preference surveys pose severe problems. This paper proposes an alternative interpretation of CBA as the simulation of the workings of competitive markets in situations in which, in reality, there is market failure. The object of a CBA of a project is to measure the surplus that is created by that project. It is shown that surplus can be defined without assuming that individuals have coherent preferences. Some of the ways in which this approach to CBA can overcome problems caused by preference anomalies are discussed.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | anomalies,cost-benefit analysis,surplus,willingness to pay |
| Faculty \ School: | Faculty of Social Sciences > School of Economics |
| UEA Research Groups: | Faculty of Social Sciences > Research Groups > Economic Theory Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Social Sciences > Research Groups > Behavioural Economics |
| Related URLs: | |
| Depositing User: | Pure Connector |
| Date Deposited: | 19 Nov 2013 16:14 |
| Last Modified: | 11 Sep 2023 14:31 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/44501 |
| DOI: |
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