Cairns, Robert D.; Heyes, Anthony G. - In: Journal of Institutional and Theoretical Economics (JITE) 160 (2004) 2, pp. 243-243
Under price-cap regulation, economic gains can be unlocked by permitting "trades" which do not make consumers worse off. We propose a simple method for "refereeing" such trades, based on compensating variation and utilizing Fisher's ideal price index. It is theoretically preferred to the...