Reservation price
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In microeconomics, the reservation price or reserve price is the maximum price a buyer is willing to buy a good or service, or the minimum price a seller is willing to sell a good or service (e.g., in an auction). Reservation prices vary for the buyer according to their disposable income, their desire for the good, and the prices of, and their information about substitute goods.
The reservation price is used to help calculate the consumer surplus or the producer surplus with reference to the equilibrium price.
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