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On the congruence between consumer tastes and market prices

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Abstract

Notions of congruence between the tastes of the consumer and the market prices are defined and it is shown that the higher the degree of congruence, the worse off the consumer is. Applications to consumption over time and expected utility are given.

Zusammenfassung

In dieser Arbeit werden Begriffe der Kongruenz von Konsumentenpräferenzen und Marktpreisen definiert. Ein hoher Grad an Kongruenz erweist sich als nachteilig für den Konsumenten. Dieses Ergebnis wird benutzt, um für ein einfaches Investitionsmodell den zu erwartenden Nutzen, der sich bei einem Konsum über mehrere Perioden ergibt, zu ermitteln.

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Authors and Affiliations

  1. Bodø Graduate School of Business, N-8002, Bodø, Norway

    Dominique Thon & Lars Thorlund-Petersen

Authors
  1. Dominique Thon
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  2. Lars Thorlund-Petersen
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Thon, D., Thorlund-Petersen, L. On the congruence between consumer tastes and market prices. OR Spektrum 18, 163–167 (1996). https://doi.org/10.1007/BF01539708

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  • DOI: https://doi.org/10.1007/BF01539708

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