Wealth and strategic financial consumption pricing

Charles S. Tapiero, Konstantin Kogan

Research output: Contribution to journalArticle

Abstract

Pricing the utility of consumption is a widely used approach to price consumption. However, its price is measured by its marginal utility that denotes that price a consumer is willing to pay. The price it pays instead, is defined by the market consumption price resulting from multiple factors such as the volume and the composition of the aggregate consumption and their consumers wealth, the financial market investors use to manage their wealth, suppliers and in general competitive factors. In such a context, consumption is financial defined by the funds that a consumer is willing to commit to consumption and its residual invested in financial markets. The purpose of this educations paper brief is to introduce a multi-agents wealth and saving model as a complementary model to the extensive models derived from Merton fundamental model.

Original languageEnglish (US)
Pages (from-to)187-191
Number of pages5
JournalRisk and Decision Analysis
Volume6
Issue number2
DOIs
StatePublished - 2017

Keywords

  • Utility
  • consumption
  • financial pricing
  • multi-agents

ASJC Scopus subject areas

  • Statistics and Probability
  • Finance
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

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