In
economics
Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services.
Economics focuses on the behaviour and intera ...
, the bliss point is a quantity of consumption where any further increase would make the
consumer
A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. T ...
less satisfied.
It is a quantity of consumption which maximizes
utility
As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosopher ...
in the absence of
budget constraint
In economics, a budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. Consumer theory uses the concepts of a budget constraint and a preference ...
. 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.
See also
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Economic satiation The economic principle of satiation is the effect whereby the more of a good one possesses the less one is willing to give up to get more of it. This effect is caused by diminishing marginal utility, the effect whereby the consumer gains less utili ...
*
Keynes–Ramsey rule In macroeconomics, the Keynes–Ramsey rule is a necessary condition for the optimality of intertemporal consumption choice. Usually it is express as a differential equation relating the rate of change of consumption with interest rates, time prefe ...
References
Consumption
Consumer theory
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