Bliss point

In economics, a bliss point is a quantity of consumption such that further increases would make the consumer less satisfied.[1][2] Thus, it is a quantity of consumption which maximizes utility in the absence of any budget constraint. In other words, it refers to the amount of consumption that would be chosen by a person so rich that money imposed no constraint on his or her decisions.

References

  1. ^ B. Binger and E. Hoffman (1997), Microeconomics with Calculus, 2nd ed., page 113. Addison-Wesley Publishers.
  2. ^ J. Nason (1991), 'The permanent income hypothesis when the bliss point is stochastic'. Federal Reserve Bank of Minneapolis Discussion Paper 46.