he term cornucopia has its roots in Greek mythology. It translates to the”horn of plenty”, which magically supplied its owners with endless food and drink. Thus the cornucopians are sometimes known as “boomsters”, and their philosophic opponents—Malthus and his school—are called “doomsters” or “doomers.” Theory of Cornucopia in Economics A cornucopian is a futurist who believes…

the decoy effect

The Decoy Effect

he decoy effect or asymmetric dominance effect is the phenomenon whereby consumers will tend to have a specific change in preferences between two options when also presented with a third option that is asymmetrically dominated. An option is asymmetrically dominated when it is inferior in all respects to one option. However, in comparison to the other option, it…

decision fatigue

Decision Fatigue

ecision fatigue refers to the deteriorating quality of decisions made by an individual, after continuously making decisions. It is now understood as one of the causes of irrational trade-offs in decision-making. Decision fatigue may also lead to consumers making poor choices with their purchases. Effects of Decision Fatigue Reduced ability to make trade-offs A person…

intrinsic theory of value

Intrinsic Theory of Value

he Intrinsic Theory of Value (also known as the theory of objective value) is any theory of value in economics which holds that the value of an object, good or service, is intrinsic or contained in the item itself. These theories try to explain the exchange value or price of a good or service. Most such…

the lipstick effect

The Lipstick Effect

he lipstick effect is the theory that when facing an economic crisis or the economy is in a recession, consumers will be more willing to buy less costly luxury goods. For example, instead of buying expensive fur coats, women will instead purchase expensive lipstick or luxury cologne. Psychology Behind The Lipstick Effect The underlying implication is that consumers…

the coase theorem

The Coase Theorem

he Coase Theorem states “that when there are conflicting property right, bargaining between the parties involved will lead to an efficient outcome regardless of which party is ultimately awarded the property rights, as long as the transaction costs associated with bargaining are negligible.” The cost for lawsuit would be the same for the two parties in…

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