IDEAS home Printed from
   My bibliography  Save this article

Expenditure Decision and Energy in Portfolio Game


  • Martin Jančar


After formalizing transactions, production, investment process and another economic activities author has returned back to general dynamic in portfolio play. Idea of this article is to postulate the assumption on agent's strategy on money expenditure or other asset's strategy. There are two main assumptions. First one is that players exercise only transactions in environment with constant prices. Second assumption is that a force is introduced for specifying strategy. Forces influence the movement of portfolio according to classical Newton equation. Motivation is author's conviction about generality of some physic law. Only four expenditure strategies are studied. They are analogies to free fall, oscillator, more axis oscillator and general potential energy field. Author thinks that there is very reasonable economic interpretation of such artificial movements. Common approach in article is that the first equation is formalizing the exchange of goods and the second equation describes acceleration on player's current account using physical analogy. This type of acceleration of expenditure is then possible to formulate as integral of movements and is similar to conservation law for sum of kinetic and potential energy in physics. Article presents a vision of kinetic energy of money balances and potential energy of the stock of goods.

Suggested Citation

  • Martin Jančar, 2000. "Expenditure Decision and Energy in Portfolio Game," Bulletin of the Czech Econometric Society, The Czech Econometric Society, vol. 7(12).
  • Handle: RePEc:czx:journl:v:7:y:2000:i:12:id:94

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Portfolio; expenditure strategy; law of motions; stock evaluation;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:czx:journl:v:7:y:2000:i:12:id:94. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jozef Barunik). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.