Consumer Surplus, Willingness-to-Pay, Perception, and b i

In quality-quantity space, any variation in willingness-to-pay was restricted to change in the quantity, xi. In addition, in price space, variation in willingness-to-pay was reflected in change. This chapter assumes that the consumer remains at. We consider first the implications of targeting for the constraint in v_ix_i space. It should be noted, however, that these assumptions introduce the possibility, indeed the likelihood, that the v_i axis is different for each consumer. This condition further complicates empirical work on variable quality. The combined concepts of demand reservation price (DRP) and demand reservation price (DMP) provide a more flexible and in-depth consideration of the processes necessary to determine a consumer's willingness-to-pay. As will be discussed shortly, unlike most models of consumer behavior, our model introduces interaction between consumers and producers in v_ix_i consumption space, in addition to x_ip_i market space. The chapter explores more to say regarding demand maintenance prices and consumer demand.