economics - Concepts

Explore concepts tagged with "economics"

Total concepts: 21

Concepts

Asymmetric Information - When one party in a transaction has more or better information than the other, affecting decision quality and market function.
Attention Capitalism - An economic system where capturing and monetizing attention is the primary business model.
Attention Economy - An economic framework where human attention is the scarce resource being traded and monetized.
Bounded Rationality - The idea that decision-making is limited by cognitive constraints, available information, and time rather than being perfectly rational.
Creative Destruction - The process by which innovation continuously destroys and replaces old economic structures.
Diminishing Returns - The principle that benefits decrease after reaching an optimal point of investment.
Game Theory - The mathematical study of strategic decision-making between rational agents.
Grossman-Stiglitz Paradox - The paradox that if markets are informationally efficient, there is no incentive to gather information, which undermines that efficiency.
Information Asymmetry - A situation where one party has more or better information than another, creating imbalanced dynamics.
Jevons Paradox - The principle that increasing the efficiency of resource use tends to increase total consumption rather than decrease it.
Knowledge Economy - An economic system where knowledge and information are primary drivers of value creation.
Long Tail Distribution - A distribution where many low-frequency items collectively represent significant aggregate value.
Matthew Principle - The phenomenon where the rich get richer and the poor get poorer - accumulated advantage.
Mental Accounting - The tendency to treat money differently based on subjective categories.
Opportunity Cost - The loss of potential gain from alternatives when one option is chosen.
Path Dependence - The phenomenon where history and early choices constrain or determine later possibilities.
Positive-Sum Game - A situation where total value can expand so all participants can benefit simultaneously.
Running Costs Influence - How ongoing operational costs affect decision-making, often more than initial investment costs.
Sunk Cost Effect - The tendency to continue an endeavor because of past investment, regardless of future value.
Switching Costs - The costs incurred when changing from one product, service, or state to another.
Zero-Sum vs Positive-Sum - Distinguishing situations where gains require losses from those where everyone can benefit.

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