The uncertain moral context of price changes

• Autores: Luiz Freitas, Jeffrey Wagner
• Localización: Ecological Economics, ISSN-e 1873-6106, Vol. 68, Nº. 4, 2009, págs. 1100-1105
• Idioma: inglés
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• Resumen

  • The purpose of this paper is to motivate a microeconomic model of consumption in which there is uncertainty that is not resolved ex post regarding the moral context of price changes. We show that neoclassical microeconomic theory can yield a result in which expected utility falls when a consumer who is sufficiently concerned for the uncertain moral context of production is faced with a falling price.