Diane Coyle on GDP and Consumer Surplus

I just received a review copy of her new book. I’ve enjoyed her work in the past, and I am optimistic about this one.

Given my recent interest, I looked in the index for “consumer surplus.” There is one entry, which leads to a discussion of consumer surplus in the context of the Internet, where we know that there is a lot of free (non-material) stuff available.

My point is that even without the Internet, there is a lot of consumer surplus. Think about anesthetic for surgery, antibiotics for infections, indoor plumbing, heating and air conditioning, automobile driving, washing machines, electric lighting, and so on.

2 thoughts on “Diane Coyle on GDP and Consumer Surplus

  1. Ok, all those things happened well before the 80s which is when the secstags started. Consumers and producers got a surplus, likely well balanced.

  2. Can we rephrase the consumer surplus question to: “What would you pay to avoid having to only use tech from the 70’s, 80’s, 90’s, 00’s?”

    Is it similar to ask: “Given an optimal set of goods purchased, how much would you pay to keep $100,000 of goods instead of $50K’s worth?”

    And from a quality of life perspective, how often does the consumer surplus maximizing set of purchases drastically change as one’s purchasing power increases from $50K to $100K?

    It would be cool to have a map of the sets per purchasing power level, as I’m probably suboptimally allocated. I guess this is where Bryan would say “Have more kids!” 😉

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