Liquidity Preference Theory — The idea that investors demand a premium for securities with longer maturities, which entail greater risk, because they would prefer to hold cash, which entails less risk. The more liquid an investment, the easier it is to sell quickly for its… … Investment dictionary
Preference — (also called taste or penchant ) is a concept, used in the social sciences, particularly economics. It assumes a real or imagined choice between alternatives and the possibility of rank ordering of these alternatives, based on happiness,… … Wikipedia
Time-Preference Theory Of Interest — A theory that examines the nature of consumerism, and the factors that influence consumers to delay current consumption or expenditures in anticipation of greater future returns. The rate of time preference itself can be quantified as the amount… … Investment dictionary
Preference elicitation — refers to the problem of developing a decision support system capable of generating recommendations to a user, thus assisting him in decision making. It is important for such a system to model user s preferences accurately, find hidden… … Wikipedia
Theory — The word theory has many distinct meanings in different fields of knowledge, depending on their methodologies and the context of discussion.In science a theory is a testable model of the manner of interaction of a set of natural phenomena,… … Wikipedia
Rational choice theory — This article is about a theory of economics. For Rational Choice Theory as applied to criminology, see Rational choice theory (criminology). Economics … Wikipedia
Revealed preference — theory, pioneered by American economist Paul Samuelson, is a method by which it is possible to discern the best possible option on the basis of consumer behavior. Essentially, this means that the preferences of consumers can be revealed by their… … Wikipedia
Time preference — In economics, time preference (or discounting ) pertains to how large a premium a consumer will place on enjoyment nearer in time over more remote enjoyment.There is no absolute distinction that separates high and low time preference, only… … Wikipedia
Revealed Preference — An economic theory of consumption behavior which asserts that the best way to measure consumer preferences is to observe their purchasing behavior. Revealed preference theory works on the assumption that consumers have considered a set of… … Investment dictionary
Biased Expectations Theory — A theory that the future value of interest rates is equal to the summation of market expectations. Proponents of the biased expectation theory argue that the shape of the yield curve is created by ignoring systematic factors and that the term… … Investment dictionary
