#economics

There are 10 posts related to #economics tag.

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The winner's curse is a tendency in which the winner of a bid in an auction pays more than the item's intrinsic value or true worth.

#atlantic-richfield

#gulf-of-mexico

Network Effects

Network effects occur when a network's value increases for users as more people begin using it.

#network-effect

#network-effects

#social-network

Newsvendor Model

This model creates an scenario in which a newspaper vendor must decide how many copies of the day's paper to stock in the face of uncertain demand and knowing that unsold copies will be worthless at the end of the day.

#critical-fractile

Sunk cost is a cost that has already occurred and cannot be recovered. In other words, a sunk cost is a sum paid in the past that is no longer relevant to decisions about the future.

Pareto Principle

The Pareto Principle states that roughly 80% of the consequences come from 20% of the causes for many outcomes.

#computer-science

#lay-of-the-vital-few

#pareto-principle

#vilfredo-pareto

Opportunity Cost

Opportunity cost is the loss of the benefit that could have been enjoyed if the best choice was chosen instead.

#microeconomics

#opportunity-cost

Hyperbolic Discounting

This theory states that humans discount the value of a later reward by some factor that increases with the delay's length.

#hyperbolic-discounting

Mental models are frameworks, worldviews, representations, or explanations of how something works. They're how we understand the world.

#decision-making

Inflation is the rise of the general prices of an economy in a period of time caused by money supply growth.

In macroeconomics, money supply is the quantity of the money in circulation that an economy have in a point of time.

#macroeconomics