Correcting Dupuit's Consumer's Surplus: A New Theory of CBA and Monopoly

Abstract

This paper clarifies Dupuit’s intention of justifying the building of public goods, and derives a new calculation scheme for CBA to support him. The reverse of the CBA logic offers significant measure of deadweight loss due to monopoly. Dupuit would condemn those economists arguing to use toll to solve congestion for having misunderstood him.