PRICE CEILINGS AND PARTY PRIVILEGE

Authors

  • JOSEPH FELDER

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    • *Associate Professor, Bradley University, Peoria, Illinois. I wish to thank the referee for very helpful comments on the first draft of this paper.


Abstract

This paper uses the consumer/producer surplus approach to provide insight into Party privilege, waiting lines, black markets, and the public policy preferences of Party members and others in Communist countries. At the same time, it uses those topics to teach about the price of time, price discrimination, the gains from trade, social welfare, and comparative statics. This analysis can be used by instructors of Intermediate Microeconomics, Comparative Systems, and Economic Development, and by those instructors of Microeconomic Principles who use the consumer/producer surplus approach to welfare economics.

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