Compensating Variation <Back to Last Page>     <Full Glossary>

Definition of Compensating Variation: Compensating variation is the price a consumer would need to be paid, or the price the consumer would need to pay, to be just as well off after (a) a change in prices of products the consumer might buy, and (b) time to adapt to that change.

It is assumed the consumer does not benefit or lose from producing the product. (Econterms)

Terms related to Compensating Variation:
None

About.Com Resources on Compensating Variation:
None

Writing a Term Paper? Here are a few starting points for research on Compensating Variation:

Books on Compensating Variation:
None

Journal Articles on Compensating Variation:
None

<Return to Main Page>