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Asymmetric Information
deals with the study of decisions in transactions where one party has more or better information than the other. This creates an imbalance of power in transactions, which can sometimes cause the transactions to go awry, a kind of market failure in the worst case.

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Occam's Razor
The principle can be interpreted as stating Among competing hypotheses, the one with the fewest assumptions should be selected.

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Deduction and Induction
Inductive reasoning involves drawing a conclusion by moving from specific observations to general ones. Deductive reasoning, on the other hand, involves drawing conclusions by applying a generalization to a specific example.

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Basic Decision Making Process
regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities. Here is an example of one process:

- Work on the right problem.
- Identify all criteria.
- Create imaginative alternatives.
- Understand the consequences.
- Grapple with your tradeoffs.
- Clarify your uncertainties.
- Think hard about your risk tolerance.
- Consider linked decisions.

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Scientific Method
a body of techniques for investigating phenomena, acquiring new knowledge or correcting and integrating previous knowledge. To be termed scientific, a method of inquiry is commonly based on empirical or measurable evidence subject to specific principles of reasoning.

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Process versus Outcome
Outcomes theory provides the conceptual basis for thinking about and working with outcomes systems of any type. An outcomes system is any system that: identifies; prioritizes; measures; attributes; or hold parties to account for outcomes of any type in any area.
Process theory is a commonly used form of scientific research study in which events or occurrences are said to be the result of certain input states leading to a certain outcome (output) state, following a set process.

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And then what?
The ability to think beyond the "first step" and think through consequences. And then what?

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The Agency Problem
(also known as agency dilemma or theory of agency) occurs when one person or entity (the "agent") is able to make decisions on behalf of, or that impact, another person or entity: the "principal". This dilemma exists in circumstances where the agent is motivated to act in his own best interests, which are contrary to those of the principal, and is an example of moral hazard.

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7 Deadly Sins
The seven deadly sins, also known as the capital vices or cardinal sins, is a grouping and classification of vices. Behaviors or habits are classified under this category if they directly give birth to other immoralities. According to the standard list, they are hubristic pride, greed, lust, malicious envy, gluttony, inordinate anger, and sloth, which are also contrary to the seven virtues. These sins are often thought to be abuses of one's natural faculties or passions.

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Network Effect
a network effect (also called network externality or demand-side economies of scale) is the effect that one user of a good or service has on the value of that product to other people. When a network effect is present, the value of a product or service is dependent on the number of others using it.

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Gresham's Law
a monetary principle stating that "bad money drives out good". For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will disappear from circulation.

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The Red Queen Effect
an evolutionary hypothesis which proposes that organisms must constantly adapt, evolve, and proliferate not merely to gain reproductive advantage, but also simply to survive while pitted against ever-evolving opposing organisms in an ever-changing environment, and intends to explain two different phenomena: the constant extinction rates as observed in the paleontological record caused by co-evolution between competing species, and the advantage of sexual reproduction (as opposed to asexual reproduction) at the level of individuals.

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