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A nationwide recreational fishing survey in Sweden was used to estimate the benefits of recreational fishing in Sweden. The survey targeted the Swedish population and, consequently, the sample contained a large fraction of zero fishing days. To consider this, a zero‐inflated Poisson model was used in the estimations. Swedes fished about 15.6 million days in 2013, of which two‐thirds were spent on inland fishing, and one‐third on marine and coastal fishing. Expected consumer surplus per fishing day varied with the season; SEK 193 for winter fishing, SEK 787 for summer fishing and SEK 95 for autumn fishing. Although about 70 per cent of total fishing days were spent on inland fishing, the weighted consumer surplus per fishing day in marine and coastal areas were higher. The results also demonstrated strong positive effects of increases in expected catch per day on number of fishing days demanded and consumer surplus, which have important implications for fishery policies directed at recreational fishing. [ABSTRACT FROM AUTHOR]

Price postponement is an effective mechanism to hedge against the adverse effect of supply random yield. However, its effectiveness and the resulting production decisions have not been studied for risk-averse firms. In this paper, we investigate the impact of price postponement and risk aversion under supply yield risk. Specifically, we study a risk-averse monopoly firm's production and pricing decisions under supply random yield with two distinct pricing schemes: (1) ex ante pricing in which the firm simultaneously makes the sales price and sourcing decisions before production takes place and (2) responsive pricing in which the pricing decision is postponed until after the production yield realization. We adopt conditional value at risk (CVaR) as the risk-aversion measurement and investigate the impact of the firm's risk-aversion level on its optimal decisions and the corresponding profit. Among other results, we show that, for each pricing scheme, there exists a unique risk-aversion threshold under which the firm chooses not to produce. Interestingly, price postponement has no impact on the risk-aversion threshold as the cutoff values under both pricing schemes are the same. We further show that the value of CVaR improvement from responsive pricing may not be monotonic in the firm's risk-aversion level. Consequently, our results indicate that, although price postponement induces operational flexibility by better matching demand with available supply, whether the firm should adopt responsive pricing needs to be carefully evaluated as the benefit may not justify the potential fixed cost associated with price postponement, especially for a highly risk-averse firm. In addition, we show that responsive pricing, even with its ex post revenue-maximization behavior, benefits the end-market consumers in equilibrium. Finally, we conduct extensive numerical studies to check and confirm the robustness of our results. This paper was accepted by Charles Corbett, operations management. [ABSTRACT FROM AUTHOR]

In order to develop the biomedical industry, government subsidy of biosimilars is an incentive policy which has been used by the government. Different government subsidy strategies have an impact on drug price, consumer surplus, social welfare, the income of biosimilars enterprises and the demand of biosimilars, which have been deeply analyzed through backward induction of the dynamic game theory. The analysis shows that the price coefficient and the influence of the subsidy on demand will affect the choice of government subsidy strategies. It is concluded that under different subsidy strategies, consumer surplus, social welfare and the income of biosimilars enterprises are positively correlated with the amount of subsidy per unit product. This paper provides a decision-making basis for developing government subsidy strategies scientifically.

Belawan Sicanang Village is a sub-district that still has a mangrove forest ecosystem in the city of Medan with a mangrove area of about 470 ha is divided into the fisheries an area 466 ha and ecotourism sectors with an area of 4 ha. This research was conducted in Belawan Sicanang Village, Medan Belawan District, North Sumatra, Indonesian in 05 January -- 05 February 2021. This study aims to measure the amount of economic value obtained by Mangrove Ecotourism in Belawan Sicanang Village seen from consmer surplus with individual travel cost. Method respondents were determined using accidental sampling method with a total of 40 respondents. The result of the study concluded that in calculating the economic value of Belawan Sicanang Mangrove Ecotourism using the travel cost method with a consumer surplus value (CS), it was obtained IDR 412,169 per year and the economic value seen from the travel cost method was IDR 1,648,159,472 per year. [ABSTRACT FROM AUTHOR]

The objective of this paper is to introduce the Causal Theory of Action (CTA) based utility and consumer surplus, and compare it to the standard utility and consumer surplus that is based on Tversky's normative theory of choice. In addition to utility and consumer surplus, price level setting is also altered based on the (CTA). (CTA) based pricing is introduced. [ABSTRACT FROM AUTHOR]

In this paper, we investigate if an increasing competition in an oligopolistic market will enhance the real incomes and consumer surplus in the long run. For this purpose, we apply a twosector overlapping generation model in which members of the young generation own the oligopolistic firms. We show that increasing competition in the oligopolistic market leads to ambiguous outcomes regarding the real income and consumer surplus in the long run. However, we show that the distribution of income will become fairer if the competition increases, but it is possible that the price for a fairer distribution is a lower income for all members of the economy. [ABSTRACT FROM AUTHOR]

This paper analytically examines the demand for surgical masks following the recent health precautions due to coronavirus. Using a simple linear demand curve and alternatively examining the impacts of requirements that mandate (a) the wearing of masks by frontline workers; (b) suggested but not required masking by the whole public; and (c) compulsory masking by the whole public. The impacts of the different scenarios on the price elasticity of demand are determined along with the slope (or the rate of change) of elasticity. Some of these results differ when a non‐linear demand curve is considered instead. The equilibrium mask prices increase when masks are universally mandated, whereas the consumer surplus is higher when masks are recommended but not mandated. However, the ranking of consumer surplus is shown to be sensitive to the supply elasticity of masks. These considerations enable a structured means to view the demand implications of masking requirements and provide some food for policy thought. [ABSTRACT FROM AUTHOR]

The nonlinear dynamical behaviors of economic models have been extensively examined and still represented a great challenge for economists in recent and future years. A proposed boundedly rational game incorporating consumer surplus is introduced. This paper aims at studying stability and bifurcation types of the presented model. The flip and Neimark–Sacker bifurcations are analyzed via applying the normal form theory and the center manifold theorem. This study helps determine an appropriate choice of decision parameters which have significant influences on the behavior of the game. The duopoly game that is formed by considering bounded rationality and consumer surplus is more realistic than the ordinary duopoly game which only has profit maximization. And then, some numerical simulations are provided to verify the theoretical analysis. Finally, we compare the dynamical behaviors of the built model with that of Bischi–Naimzada model so as to better understand the performance of the duopoly game with consumer surplus. [ABSTRACT FROM AUTHOR]

Online streaming wars are intensifying. Netflix is known as the market leader in the streaming business. However, since 2019, Netflix has been losing subscribers in the United States and is at a turning point where it needs to reassess its current position in the market. While Netflix is losing dominance, rivals Amazon Prime and Hulu continue to gain market shares. Studies from Deloitte and PricewaterhouseCoopers indicated a new shift in the streaming landscape caused by the abundance of streaming options and rising subscription costs. Recent surveys showed that consumers are excited about new streaming services, such as Disney +. Nearly two-thirds of consumers intend to terminate or downgrade one or more of their current subscriptions to make room for a new service. Moreover, it seems that consumers want ad-supported options. In Deloitte's latest Digital Media Trends survey, 65% responded that they would watch ads to eliminate or reduce subscription costs. Seventy percent of Hulu's subscribers choose its lower-priced ad-supported plan. NBC recently launched its own streaming service, Peacock, with a free ad-supported option. This opposes Netflix's brand identity of "no ads" and premium differentiation. With increasing pressure from competition and the growing risk of subscriber loss, Netflix needs to diversify its price plans. The company could try implementing the lower-priced mobile-only plan they are currently testing or plan to test in other regions. Netflix should also consider features or benefits for loyal subscribers to maintain a stronger consumer base. [ABSTRACT FROM AUTHOR]

In an era of pressure on government resources, nonprofits can serve an important role in the provision of services to the public. However, without clear and quantifiable estimates of their impact, it is difficult for policymakers to justify allocating governmental resources toward these services. This is especially the case for ephemeral opportunities that arise without substantial advance notice or a special program that occurs only once (contrasted to programs that nonprofits provide on a continuing basis). This research note presents economic impact estimates for a unique example of a remarkable effort involving numerous entities from the government, for‐profit, and nonprofit sectors. Our contribution is to exemplify methods that might be used to assess the economic impact of ephemeral or one‐time events. Of course, each situation is unique, so the judgment of the analyst is always a key input. Using three survey‐generated data points per respondent, nonprofits can replicate the methods of this study to assess the economic impact of special events herein. With estimates such as the ones examined herein, policymakers can contrast the benefits of special events with their costs in order to determine if such events are worthwhile investments. [ABSTRACT FROM AUTHOR]

Modeling Choices with Different Variabilities In "Heteroscedastic Exponomial Choice" (HEC), Aydın Alptekinoğlu and John Semple investigate a discrete choice model that can handle choices with utilities having different variances. This new model, the HEC model, nests the exponomial choice (EC) model as a special case. Like EC, HEC has excellent structure and permits the choice probabilities, demand elasticities, and consumer surplus to be expressed in an analytically convenient (closed) form. Determining optimal monopoly prices for products in an assortment as well as determining equilibrium prices for an oligopoly of single-product firms are both tractable problems. Moreover, fitting the choice model to real data is straightforward, given the shape (log-concavity) of the likelihood function for a given variance structure. The HEC model performed well against MNL (multinomial logit) and EC models in empirical tests on household panel data for 30 categories of grocery products. In particular, brand variance was statistically significant in virtually every product category tested. We investigate analytical and empirical properties of the Heteroscedastic Exponomial Choice (HEC) model to lay the groundwork for its use in theoretical and empirical studies that build demand models on a discrete choice foundation. The HEC model generalizes the Exponomial Choice (EC) model by including choice-specific variances for the random components of utility (the error terms). We show that the HEC model inherits some of the properties found in the EC model: closed-form choice probabilities, demand elasticities, and consumer surplus; optimal monopoly prices that are increasing with ideal utilities in a hockey-stick pattern; and unique equilibrium oligopoly prices that are easily computed using a series of single-variable equations. However, the HEC model has several key differences with the EC model, which show that variances matter: the choice probabilities (market shares) as well as equilibrium oligopoly prices are not necessarily increasing with ideal utilities; and the new model can include choices with deterministic utility or choices with zero probability. However, because the HEC model uses more parameters, it is harder to estimate. To justify its use, we apply HEC to grocery purchase data for 30 product categories and find that it significantly improves model fit and generally improves out-of-sample prediction compared with EC. We go on to investigate the more nuanced impact of the variance parameters on oligopoly pricing. We find that the individual and collective incentives differ in equilibrium: firms individually want lower error variability for their own product but collectively prefer higher error variability for all products—including their own—because higher error variability softens the price competition. [ABSTRACT FROM AUTHOR]

The green spaces preserve natural heritage, spectacular landscapes, and wildlife habitats. By incorporating national parks, it leads to economic growth, environmental sustainability, social involvement, and provides a protected area for endangered wildlife. Nature-dependent tourism indicates a critical place within the national economy. Pakistan is tackling the tourism industry and implementing nature-related approaches using national parks. The main objective of the proposed study is to appraise the economic value of the eastern arid regions of Pakistan and determine their environmental importance. For the assessment of recreational value, the travel cost method (TCM) and the zero truncated negative binomial regression models were chosen. Recreation demand was negatively linked to salary and had a significant positive association with the place of residence, age, and length of stay. The total estimated annual consumer surplus of the parks was Rs. 3317/person, while outsider consumer surplus was Rs. 3032/person/visit, and consumer surplus native annual value was Rs. 3289/person/visit. The results show that visitors have fewer tendencies towards the recreational site, as they are restricted to paying the entrance fee. This study contributes to environmental content reservations, such as a clean atmosphere, soil protection, and a stable ecosystem. It also improves economic valuation and sends a thought-provoking signal to native authorities to effectively manage the supervision of national parks. [ABSTRACT FROM AUTHOR]

Abstract Background Multiple pharmacotherapy options are available to control blood glucose in Type 2 Diabetes Mellitus (T2DM). Patients and prescribers may have different preferences for T2DM treatment attributes, such as mode and frequency of administration, based on their experiences and beliefs which may impact adherence. As adherence is a pivotal issue in diabetes therapy, it is important to understand what patients value and how they trade-off the risks and benefits of new treatments. This study aims to investigate the key drivers of choice for T2DM treatments, with a focus on injection frequency, and explore patients’ associated willingness-to-pay. Methods A discrete choice experiment (DCE) was used to present patients with a series of trade-offs between different treatment options, injectable and oral medicines that were made up of 10 differing levels of attributes (frequency and mode of administration, weight change, needle type, storage, nausea, injection site reactions, hypoglycaemic events, instructions with food and cost). A sample of 171 Australian consenting adult T2DM patients, of which 58 were receiving twice-daily injections of exenatide and 113 were on oral glucose-lowering treatments, completed the national online survey. An error components model was used to estimate the relative priority and key drivers of choice patients place on different attributes and to estimate their willingness to pay for new treatments. Results Injection frequency, weight change, and nausea were shown to be important attributes for patients receiving injections. Within this cohort, a once-weekly injection generated an additional benefit over a twice-daily injection, equivalent to a weighted total willingness to pay of AUD$22.35 per month. Conclusions Based on the patient preferences, the importance of frequency of administration and other non-health benefits can be valued. Understanding patient preferences has an important role in health technology assessment, as the identification of the value as well as the importance weighting for each treatment attribute may assist with funding decisions beyond clinical trial outcomes.

The main attractions of national parks include their scenic beauty, security, wildlife and trees. For preserving and maintaining national parks, an appropriate pricing policy can be used. The current study focuses on using the travel cost method (TCM) and contingent valuation method (CVM) as a non-market valuation technique to value the National Botanical Garden in Bangladesh, a developing country where little or no previous works of this kind has been conducted before. The main objective of the paper was to suggest an appropriate entrance fee for the park by assessing the willingness to pay (WTP) from the TCM and CVM; by determining a revenue maximizing entrance fee from the CVM; and by considering socio-demographics, the characteristics of visits and the motivation of the visitors to preserve the National Botanical Garden. The study sampled 100 visitors. These visitors participated in a survey which consisted of closed questions followed by a semi structured in-depth interview. For data processing, SPSS and Microsoft Excel were used. Based on the travel cost demand function using the TCM, the study found that the amount respondents were willing to pay for entrance was 0.955 US dollars and yearly consumer surplus was 593634.5 USD. From the CVM, it was estimated that the WTP was 0.225 USD for the entrance and revenue maximizing entrance fee was 0.376 USD. Finally, the entrance fee suggested for National Botanical Garden was around 0.225 USD.

The current practise of cost-benefit analysis inWestern countries consists of a collection of various incompatible ideas and methodologies to obtain replicable numbers for the costs and benefits of major public spending plans. This paper describes the main elements of the dominant methodology, which combines consumer and producer surplus, price-taking, government-inputs-as-outputs, hedonic pricing of externalities, and the issue-specific use of partial or general equilibrium thinking. The paper then discusses how that methodology can be augmented and partially replaced by looking at how prospective policies would change the total number of WELLBYs (life satisfaction-adjusted years of life) of the population. The ability of the WELLBY methodology to address complex externalities is illustrated by the Easterlin Discount, which is a proposed reduction factor of 75% on all estimates of private consumption benefits to offset the envy caused in others. [ABSTRACT FROM AUTHOR]

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This paper aims to assess five urban transportation pricing policies (including petrol price, parking fee, taxi fare, bus fare, and metro fare). Using stated preference panel data, we estimate a mixed logit (ML) model and a latent class (LC) model, which account for individual unobserved heterogeneity. The estimated policy implications resulting from these models are compared to get a deeper understanding of the differences in policy recommendations when using different treatments of unobserved heterogeneity. In this regard, we focus on two criteria, which are the changes in mode share and the changes in expected consumer surplus in response to the changes in the level of pricing policies. Results by both ML and LC models reveal that in some comparisons, the ML and LC models yield similar results, as both indicate the policy of increasing petrol price is more effective than increasing parking fee on reducing car congestion. However, we can also find some differences in the behavioral outcomes of these models. Overall, the ML model estimated substantially greater choice elasticities and changes in mode share, in comparison to the LC model. Some of these differences may lead to different policy recommendations as the ML model suggests avoiding the policy of increasing bus fare due to its large negative impact on car share, while the LC model predicts a relatively small reduction in car share after increasing bus fare and therefore, can motivate policymakers toward this policy. This paper also provides new evidence on one of the key assumptions in discrete choice analysis, namely the assumption of an equal (generic) cost coefficient over transport modes is not satisfied when the travelers do not have a true perception about their travel costs (e.g. fuel cost and parking cost). • Assess five urban transportation pricing policies in order to find their implications in managing traffic congestion in Tehran. • Using mixed logit model (ML) and a latent class model (LC) to account for individual unobserved heterogeneity. • Increasing petrol price is considerably more effective than parking fee on decreasing car share. • ML and LC models estimated relatively similar values of travel time saving and expected consumer surplus. • The estimated cost parameter for the car is significantly smaller than the parameter of other alternatives. [ABSTRACT FROM AUTHOR]

The present study estimated the economic value of Kallar Kahar Lake in Pakistan. This is among the first-ever studies considering the impact of the visitors' perception on the number of visits to the lake in South Asia. Individual travel cost method was employed. Variables on the perception of the visitors were significantly related to the number of visits to the recreational site. Results implied that improving environmental quality and other conditions of Kallar Kahar Lake could increase the number of visits made to the lake. Consumer surplus was US$18.76 per person per visit, and the total annual value of consumer surplus reached US$5.3 million. Low elasticity of demand for recreational site implied the feasibility of imposing the entrance fee. This study contributes its part by providing economic valuation of the benefits provided by Kallar Kahar to be useful for the policymakers and local authorities for efficient management. [ABSTRACT FROM AUTHOR]

The research aimed to study the impact of agricultural policy on the wheat crop in Egypt during the period (2000-2017), by applying the partial equilibrium model to identify the effect of the agricultural policies adopted on the net loss of the producer and the consumer, and measure the level of producer and consumer welfare and the change in both government revenue and cash The descriptive and quantitative method was used to analyze data such as averages, percentages, and the regression analysis method3 The results showed that there was a statistically significant annual increase in each of total production, imports, consumption and the size of the food gap at a rate of about 183, 276, and 282 thousand tons, respectively, while there was a statistically significant decrease in the self-sufficiency ratio of about 39.1%, and the statistical significance did not prove a decrease. Total production3 The application of the partial equilibrium model on the wheat crop revealed that the society’s average net loss on the production side amounted to about LE million 30.3, and on the consumption side, it reached about LE Billion 8.4 during the study period. On the other hand, it was found that the economic welfare of the producers (change in producer surplus) achieved during all the years of the study, at an annual average of about 3693 million pounds. As a result of selling large quantities at high prices as a result of the rise in agricultural price over the world price, which indicates that the economic policies adopted were in favor of the production side of the commodity. In terms of consumer surplus, it was found that an annual average loss of about LE Billion 2.5 was achieved during the study period as a result of purchasing less quantities at higher prices, and consequently, the welfare of wheat consumers decreased. As for government revenue, it was found that a return was achieved during the study period at an annual average of about LE Billion 7.2. The return in government revenue is due to the rise in the domestic price over the international price. With regard to foreign exchange earnings, it was revealed that a loss was achieved during the study period, at an annual average of about LE Billion 16.6. As for the net effect on imports, it was found that society achieved gains during the study period at an annual average of about LE Billion 8.4, and this may be due to the efficient distribution of productive resources at the product level and the rationalization of consumption spending at the consumer level, which reflects the positive effects of implementing the economic liberalization policy3 [ABSTRACT FROM AUTHOR]

Although recreational fishing is popular in Japan, few estimates have been made of its economic value to the country. This study aims to (1) evaluate the economic value of recreational fishing in Tango Bay, Kyoto Prefecture using the travel cost method (TCM); and (2) explore the development of related regional economies around Tango Bay. The TCM analysis showed that 150,000 anglers visit Tango Bay annually, and the estimated total annual travel cost and total annual consumer surplus of recreational fishing there are approximately JPY 3.8 billion and JPY 11.7 billion, respectively. The annual commercial fisheries production of Kyoto Prefecture in 2017 was JPY 3.0 billion. Thus, in Tango Bay, coastal fish resources not only have a direct use value as food, but also a large indirect value as targets for recreational fishing. The importance of recreational fishing relative to commercial fishing has increased in Japan similar to in other countries where it is popular. As many people enjoy recreational fishing in Japan, it is expected to have an impact on domestic fish resources. To address this, both commercial and recreational fishing should be included in fish resource management activities aimed at the development of related local economies in Japan. [ABSTRACT FROM AUTHOR]

• Cultural heritage sites comprise a large segment of U.S. National Parks, but there is little research into the economic benefits provided by such sites to park visitors. • Visitor survey data is used to estimate an economic value of $157.34 per person to visit the Pearl Harbor National Memorial. • Aggregating total annual consumer surplus for visitation is $270 million per year. • Results support a substantial return on the public's recent investments in safety and visitor experience enhancements. This study contributes to the existing literature on valuing visitation to an important cultural heritage site. Pearl Harbor National Memorial in Hawaii remembers and honors those that served the United States in the Pacific battles of World War II. Although historic and cultural monuments and memorials comprise a substantial portion of the U.S. National Park System, there is little research into the economic benefits such sites provide to visitors. These benefits are a critical component of planning and management decisions based on an economic efficiency criterion. This study contributes to the literature by quantifying the economic value derived from visitation to Pearl Harbor National Memorial, home of the USS Arizona Memorial. Using data from a recent visitor survey, we explore the motivations for visiting the site and how such motivations may influence these values. These findings have significant implications, demonstrating a substantial return on the public's investment in a unique historic site and recent investments in maintaining the site for safety and an enhanced visitor experience. [ABSTRACT FROM AUTHOR]

Remanufacturing has been recognized both in literature and practice because of its greenness and cost saving. Since the reproduction processes could be affected by uncertain factors, remanufacturing is much more complex than producing new products. To investigate how yield uncertainty and market competition affect remanufacturing decisions, we compare the results under three classical market scenarios with random yield, that is, (a) Nash–Cournot, (b) monopoly, and (c) Stackelberg–Cournot. On comparing the expected remanufacturing scale, expected profit, and consumer surplus, it shows that as the number of remanufacturers increases, the planned collection quantity of a single remanufacturer decreases, while the total expected market output increases. Furthermore, we find that the largest expected profit and expected consumer surplus brought by market scenarios depend on a threshold remanufacturer number. We also relax the assumptions and extend our model to consider the scenario of m leaders and n−m followers in a Stackelberg game. It is interesting to find that the first‐mover advantage in profit and market share of the leader remanufacturer would be challenged when the number of leader remanufacturers is no less than 2. The results can be potentially useful for managerial decisions and environmental administrations. [ABSTRACT FROM AUTHOR]