Economic Agent
Economists like to refer to the people they study as economic agents. Economic agents come in two basic varieties, producers and consumers, and we study their behavior in the Theory of the Firm and the Theory of the Consumer.
An economic agent appointed to act on behalf of other agents in collecting information and/or investing funds on their behalf. The term was coined by Doug Diamond to describe deposit taking FIs in his 1984 Review of Financial Studies paper.
rational economic agents price their goods so as to maximize their constant utility function;
in the long run prices of goods should reflect their scarcity.
[edit] Example of Price Transmission ...
Refers to an economic agent (firm or consumer), group of agents (industry), model, or analysis that is characterized by perfect competition. Contrasts with imperfectly competitive.
Perfectly elastic ...
Since the market where economic agents work is lacking the certainties that could determine ex ante the results that can be obtained from any financial transaction, one can derive that an element of risk is associated with any economic decision.
The concept, formulated by British economist David Ricardo, according to which economic agents- people, firms, countries- are most efficient when they do the things that they are best at doing.
Gibson-Graham's complex topology of the diversity of contemporary market economies describing different types of transactions, labour, and economic agents.
Much contemporary theory assumes that economic agents act rationally to optimize well-being given available information.
NASH EQUILIBRIUM: A concept from Game Theory which establishes that a set of strategies followed by economic agents within a game is in equilibrium if, holding the strategies of all other economic agents constant, ...
The benefits of inflation derive from the use of expansionary policy to trick economic agents into behaving in socially preferable ways even though their behavior is not in their own interest....
The options discussed so far were proprietary to a particular economic agent. In some cases, real options are shared, introducing an element of game theory into their valuation.
Definition: The flow of income and payments between economic agents in an economy. The key agents are households and firms and the circular flow shows how money moves between them.
This is the amount that must be paid to another economic agent to pay for their loss of economic welfare.
If sufficient compensation is paid it can enable a pareto improvement to society
Compensation for Externalities.
Any departure from the ideal of perfect competition that interferes with economic agents maximizing social welfare when they maximize their own.
Accounting is the individual who takes the financial risk of the management and operation of a business or venture. Or 2. Economics an economic agent who perceives market opportunities and assembles factors of production to exploit them in a ...
Financial Intermediaries Financial institutions that assist the transfer of savings from economic agents with excess savings to those that need capital for investments.
Economic agents with knowledge of these state variables assess the current state of the economy. As their actions determine in part the values of the state variables in the next sequential time period, this structure is termed 'recursive'.
held negotiable bilateral contracts that allow users to manage their exposure to credit risk. Credit derivatives are financial assets like forward contracts, swaps, and options for which the price is driven by the credit risk of economic agents ...
These price instruments without regard for other prices quoted in the market. Instead, they base prices on economic theory, assumptions about the preferences of economic agents, supply and demand, etc.
The companies also recruit the services of investment banks to advise them on financing methods, acquisitions, and financial risks and also to act as intermediaries between the company and the economic agents in lending like banks, investors etc.
 See also: Equilibrium, Values, Banks, Optimal, Economic model
  
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