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Application of Radner Equilibrium Theory to Financial Planning

Bhavin Shah
Director
June 16, 2014

Reading Time: 2 minutes According to Radner Equilibrium theory, if economic decision makers had access to unlimited computational capacity, they would be able to make an optimal allocation of resources based on economic equilibrium even in the face of uncertainty. How this theory can be used by Financial Planners to help clients meet their goals? Bhavin Shah shares insights on how Financial Planning can help to attain Equilibrium under uncertainty. The Equilibrium for financial planners can be achieved if plans drawn are consistent and in line with individual goals, argues Bhavin.

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