The article explores how asset prices can be calculated using a specific type of preference model. By looking at how market prices of risk are influenced by preferences and model parameters, the researchers show that large changes in consumption volatility can lead to significant shifts in asset prices. This can result in higher premiums for certain types of options, creating a pattern similar to what is seen in real-world index options markets. The model used in the study helps to explain how these changes in asset prices occur as a result of shifts in risk perception by investors.