Academic journal article The Journal of Consumer Affairs

Errata

Academic journal article The Journal of Consumer Affairs

Errata

Article excerpt

Listed below are corrections to equations found in the article, "Willingness to Pay for Information: An Analyst's Guide," by Kyung Hee Lee and Charles B. Hatcher, published in the previous issue (Volume 35, Number 1) of The Journal of Consumer Affairs.

Page 122

v([p'.sub.1], [y.sub.1] - C) = v([p.sub.1], [y.sub.1]), (1)

C = e([p.sub.1], [u.sub.1]) - e([p'.sub.1], [u.sub.1]) = [[integral].sup.[p.sub.1].sub.[p.sub.1]'] h(p, [u.sub.1])dp

Page 123

v([p.sub.1], [y.sub.1]+E) = v([p'.sub.1], [y.sub.1]), (2)

E = e([p.sub.1], [u.sub.2]) - e([p'.sub.1], [u.sub.2]) = [[integral].sup.[p.sub.i].sub.[p.sub.1]'] h(p, [u.sub.2])dp

where [u.sub.2] = v([p'.sub.1], [y.sub.1]) and E > 0, if [p'.sub.1] < [p.sub.1], or E < 0, if [p'.sub.1] > [p.sub.1].

Page 125

Second, consumer's willingness to pay has to be equal to the difference between consumer surpluses (i.e., consumer surplus associated with [c.sub.1] - consumer surplus associated with [c.sub.0]), not just to the gap between prices.

PLEASE REMOVE THIS SHEET AND PLACE IT IN THE SUMMER 2001 (VOLUME 35, NUMBER 1) ISSUE OF THE JOURNAL OF CONSUMER AFFAIRS

ERRATA

Listed below are corrections to equations found in the article, "Willingness to Pay for Information: An Analyst's Guide," by Kyung Hee Lee and Charles B. …

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