Description
Return surplus = reservationPrice-actualPrice and participates when reservationPrice >= actualPrice.
Economic value comparisons need a common currency, period, quantity basis and definition of the relevant benefit or cost. A purchasing-power ratio, surplus segment or external-cost identity is only a contribution to a broader valuation.
Return surplus = reservationPrice-actualPrice and participates when reservationPrice >= actualPrice.
When to use this tool
Use Reservation Price Surplus One Unit when checking a declared price, benefit or cost comparison.
How to use the tool and how it works
- Enter reservationPrice, actualPrice. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read surplus, participates. Inspect participates before interpreting the associated values.
Return surplus = reservationPrice-actualPrice and participates when reservationPrice >= actualPrice.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| reservationPrice | Reservation Price | Required. Finite number. |
| actualPrice | Actual Price | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| surplus | Surplus | Required. Finite number. |
| participates | Participates | Required. Boolean. |
{
"input": {
"reservationPrice": 20,
"actualPrice": 15
},
"output": {
"surplus": 5,
"participates": true
}
}Limitations and assumptions
- Use one currency per modeled unit. Indifference is included as participation by convention; transaction costs, budget limits and real consumer choice are not established.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use appropriate empirical valuation and full system boundaries when assessing welfare, living standards or individual choices.
References
Similar or alternative tools
- Consumer Surplus One Linear Segment
surplus = quantity*((firstWillingness+lastWillingness)/2-price).
- External Cost Private Social Gap
Return socialCost = privateCost+externalCost and gap = externalCost on one matching monetary basis.