THE ABILITY TO ASSUME THE DECISIONAL RISK IN THE CONSUMPTION PROCESS

Laura Diaconu () and Corneliu C. Diaconu ()
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Laura Diaconu: Faculty of Economics and Business Administration “Al. I. Cuza” University Iasi, Romania
Corneliu C. Diaconu: „Gr. T. Popa” University Iasi, România

The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, 2009, vol. 9, issue 2(10), 75-82

Abstract: The individuals’ ability to assume the risk in taking the consumption decisions was largely debated both at the theoretical and empirical level. While at the half of the XXth century there were many attempts to find out a mathematical solution for this problem, with the help of the statistical and econometrical interpretations, at the beginning of the XXIst century the analysts’ preoccupation for this subject imposed taking into consideration some elements related not only to the goods acquired but also to the specific feature of the individuals. This is why the present paper wants to analyze the individuals’ ability to assume the risk in taking the consumption decisions, considering some objective and subjective aspects, such as the temperament and the character traits, the socio-cultural particularities, the possibility to access the information or the products’ intangible characteristics - such as, for example, the brand name. Assuming that the isoutility function does not reflect only the consumers’ preferences for various goods, but it is also an assessment for the probability of occurrence of some states/events, in the end of this paper we tried to determine the way in which the ability of assuming the risk may be associated with the shape of the indifference curve.

Keywords: : uncertainty; risk; decisional process; consumption (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:scm:ausvfe:v:9:y:2009:i:2(10):p:75-82

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