When prices decrease, consumer surplus grows in two ways: existing buyers enjoy greater savings, and new consumers who were previously priced out of the market can now participate. This relationship ...

A surplus occurs when assets or goods exceed demand. Learn about different types of surplus, their impact on economies, and examples of surplus scenarios.

We study the welfare implications of personalized pricing, an extreme form of third-degree price discrimination implemented with machine learning for a large, digital firm. Using data from a unique ...