Welfare Measurement and Representative Consumer Theory


V. Kerry Smith
Department of Economics
Duke University
Durham NC  27708
and
Resources for the Future
Washington, D.C.


Roger Von Haefen
Center for Environmental and Resource Economics
Duke University
Durham, NC  27708



Abstract

	This paper generalizes results from Anderson, De Palma, and Thisse [1992] linking individual random utility and aggregate representative individual demand models, to consider a comparable relation for the willingness to pay functions for quality attributes of marketed goods.  It also suggests how the logic can be used to describe links between choice occasion and aggregate models (across occasions) for an individual.

Key Words:  Willingness to Pay, RUM, Aggregation

JEL Classification No(s): DG1, Q2


Address for Correspondence:		V. Kerry Smith
					Department of Economics
					Duke University
					Box 90097
					Durham NC  27708
					Fax: (919) 684-8741