The term represents the benefit consumers receive when they pay less for a product or service than they were willing to pay. It is the difference between the maximum price a consumer is prepared to pay and the actual price they do pay. For example, an individual might be willing to pay $50 for a particular book, but if they purchase it for $30, their benefit is $20.
This concept is a fundamental element in welfare economics, providing insight into the efficiency of markets. It is a measure of economic well-being, reflecting the gains consumers derive from market transactions. Historical analysis of market structures often incorporates examination of the aggregate benefit accrued to consumers, revealing the societal impact of pricing strategies and government interventions.