PP Presentation

• If people know the quality of the good before purchase, then we can use the money that they spend on a good or service as a measurable indicator of their unmeasurable utility.

• If we aggregate the money spent on a particular good or service by all buyers, we can get a measure of the aggregate or social utility generated by that good or service.

• But what if we are trying to measure the social utility of protecting an aspect of the natural environment that is not bought or sold in markets?

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