Behavioural Present Value Defined as Fuzzy Number – a New Approach

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.

Keywords

• behavioural finance
• present value
• fuzzy number
• financial equilibrium
• market equilibrium
• c02
• c44
• g10