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Behavioural Present Value Defined as Fuzzy Number – a New Approach

Author

Listed:
  • Piasecki Krzysztof

    (Poznań University of Economics and Business, Department of Operations Research, Al. Niepodległości 10, 61-875 Poznań, Poland)

  • Siwek Joanna

    (Poznań University of Economics and Business, Department of Operations Research, Al. Niepodległości 10, 61-875 Poznań, Poland)

Abstract

The behavioural present value is defined as a fuzzy number assessed under the impact of chosen behavioural factors. The first formal model turned out to be burdened with some formal defects which are finally corrected in the presented article. In this way a new modified formal model of a behavioural present value is obtained. New model of the behavioural present value is used to explain the phenomenon of market equilibrium on the efficient financial market remaining in the state of financial imbalance. These considerations are illustrated by means of extensive numerical case study.

Suggested Citation

  • Piasecki Krzysztof & Siwek Joanna, 2015. "Behavioural Present Value Defined as Fuzzy Number – a New Approach," Folia Oeconomica Stetinensia, Sciendo, vol. 15(2), pages 27-41, December.
    • Handle: RePEc:vrs:foeste:v:15:y:2015:i:2:p:27-41:n:2
    DOI: 10.1515/foli-2015-0033
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    References listed on IDEAS

    as
    1. Barberis, Nicholas & Shleifer, Andrei & Vishny, Robert, 1998. "A model of investor sentiment," Journal of Financial Economics, Elsevier, vol. 49(3), pages 307-343, September.
    2. Yong Fang & Kin Keung Lai & Shouyang Wang, 2008. "Fuzzy Portfolio Optimization," Lecture Notes in Economics and Mathematical Systems, Springer, number 978-3-540-77926-1, October.
    3. A. H. Boussabaine & Taha Elhag, 1999. "Applying fuzzy techniques to cash flow analysis," Construction Management and Economics, Taylor & Francis Journals, vol. 17(6), pages 745-755.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Krzysztof Piasecki & Anna Łyczkowska-Hanćkowiak, 2019. "Representation of Japanese Candlesticks by Oriented Fuzzy Numbers," Econometrics, MDPI, vol. 8(1), pages 1-24, December.
    2. Anna Łyczkowska-Hanćkowiak & Krzysztof Piasecki, 2018. "The present value of a portfolio of assets with present values determined by trapezoidal ordered fuzzy numbers," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 28(2), pages 41-56.
    3. Krzysztof Piasecki & Joanna Siwek, 2018. "The portfolio problem with present value modelled by a discrete trapezoidal fuzzy number," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 28(1), pages 57-74.

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    More about this item

    Keywords

    Behavioural finance; present value; fuzzy number; financial equilibrium; market equilibrium;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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