Cost-benefit analysis is a well-known technique for evaluating the merits of a policy by attempting to quantify in financial terms all of the costs and benefits that will result from its implementation. In this article, the author focuses on the important question of whether offer prices or...

The conventional assumption made by cost-benefit analysts is that individual preference structures are not altered by any of the policies that are under consideration. This simplifying "exogenous preferences" assumption is not always satisfied, however, and in some instances the preference...