I’d say that the cheerful price is a primarily psychological concept, while shadow price is a more analytical one, and that is the whole point—when what you feel and what you think you ought to feel disagrees, the concept of cheerful price is explicitly telling you to not worry about the mismatch, and go with the former.
I suppose this is the most correct answer. I’m not really updating very much though. From my perspective I’ll continue to see cheerful price as a psychological/subjective reinvention of shadow price.
Edit: It seems clear in this context, shadow price isn’t exactly measurable. Cheerful price is just the upper estimate on the shadow price.
I’d say that the cheerful price is a primarily psychological concept, while shadow price is a more analytical one, and that is the whole point—when what you feel and what you think you ought to feel disagrees, the concept of cheerful price is explicitly telling you to not worry about the mismatch, and go with the former.
I suppose this is the most correct answer. I’m not really updating very much though. From my perspective I’ll continue to see cheerful price as a psychological/subjective reinvention of shadow price.
Edit: It seems clear in this context, shadow price isn’t exactly measurable. Cheerful price is just the upper estimate on the shadow price.