Consumer Surplus

The ways we win

Because of its invisibility, buyers don't recognise all of their gains after their purchase. The product or service is the most salient of these: if I buy a new Apple Watch charger, I notice the charger on my desk. I'm also aware of my loss: if it costs me £20, I will now feel the missing money. Consumer surplus is often ignored: if I was willing to spend £30, I'd gained £10 from the purchase. Forgetting this gain often tricks people into thinking a voluntary trade is a win-lose when it is one of the clearest win-win scenarios in everyday life.