- Author
- Muehlhause, C. O.
- Title
- Cost/Benefit Framework for Consumer Product Safety Standards.
- Coporate
- National Institute of Standards and Technology, Gaithersburg, MD
- Journal
- Journal of Research of the National Bureau of Standards, Vol. 83, No. 5, 459-483, September/October 1978
- Keywords
- safety standards | cost benefit analysis | fire hazards | upholstered furniture
- Abstract
- The effect of a mandated consumer product safety standard on the net public benefit is expressed in terms of the difference between two well characterized market states (pre- and post-standard), each of which is assumed to be in static equilibrium. The analysis is faciliated by treating the post-standard state as one which can be "derived" from the pre-stand state by 1) expanding the production cost and demand functions around their initial market values and 2) introducing modifications in the production cost function required for compliance with the standard