Quantifying satisfaction with regard to preferences – A spatial model

Abstract

Each monetary decision that any individual partakes in involves a level of satisfaction that has been derived from the same. The primary goal of this paper is to create and implement a model that allows for the quantification of that very satisfaction that an individual may experience when a monetary based decision has been made. Such a decision could vary from buying an apple to donating some money to a juggler on the street. The model created here is set on a number of qualitative and quantitative assumptions which display an individual’s movement through an economic space that is filled with infinite preferences to choose from. The movement of the individual is based on the satisfaction that is derived from engaging in a finite set of preferences which when looked at, represents a wave. To successfully quantify and capture the amount of satisfaction that the individual is experiencing from a certain monetary decision, a sine wave equation has been used (equating the mathematical parameters to behavioural ones) to come to a fixed value which is known as the satisfaction numerical (Sn). The basis of assuming the individual to be an economic entity and using the principles of physics to understand behaviour is inspired from Asghar Qadir’s paper “Quantum Economics” published in 1978 (ASGHAR QADIR, 1978).