Econometrica: Nov 1976, Volume 44, Issue 6
The Welfare Loss from Price Distortions
https://doi.org/0012-9682(197611)44:6<1253:TWLFPD>2.0.CO;2-X
p.
1253-1257
Trout Rader
We generalize to directionally dense but otherwise arbitrary production the Foster-Sonneschein theorem that increases in price distortion reduce consumer welfare. No convexity assumptions appear as in another generalization due to Kawamata. The many consumer case is considered but found to be problematic.Log In To View Full Content