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Analysis And Modelation Of The Consumer’S Behaviour Of Financial Products On The Romanian Capital Market

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Author Info
Assist. Ph.D Dalia Simion
Assist. Ph.D Daniel Toba (University of Craiova Faculty of Economy and Business Administration, Craiova, Romania)
Ph.D Student Danut Barbu (Romanian Court of Accounts)
Abstract

The study of the consumers’ behavior of financial products is based upon the hypothesis according to which they behave rationally that is they try to aim their objectives at the highest level possible, taking into account the restrictions that they are forced to face. Having this context the basic idea that guides the consumers’ behavior of financial products is maximizing the forecasted utility. Utility will be maximized when a certain combination of forecasted gains and risks is preferred in report with the other combinations. The consumers of financial products establish their objectives in the conditions of the estimated risk and profitability and they have to make a choice taking into account the uncertainty conditions.

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Publisher Info
Article provided by University of Craiova, Faculty of Economics and Business Administration in its journal Revista Tinerior Economisti (The Young Economists Journal).

Volume (Year): 1 (2009)
Issue (Month): 12 (April)
Pages: 125-135
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Handle: RePEc:aio:rteyej:v:1:y:2009:i:12:p:125-135

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Related research
Keywords: consumer behavior; financial product; utility function; risk; uncertain;

Find related papers by JEL classification:
G00 - Financial Economics - - General - - - General
G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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This page was last updated on 2009-11-22.


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