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Theory of second best |
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Theory of second bestSee second best.Similar MatchesPortfolio theoryPortfolio theorySee: Modern portfolio theory. Conduit theoryConduit theoryA theory that because investment companies are merely conduits for capital gains, dividends, and interest, which are in fact passed through to shareholders, the investment company should not be taxed at the corporate level. Presidential election cycle theoryPresidential election cycle theoryA theory that stock market trends can be predicted and explained by the four-year presidential election cycle. Game TheoryGame TheoryGame Theory is a theory of rational behavior of participants in interactive decision-making scenarios. It helps predict how other participants of the situation / scenario (game) will respond in certain situations, or to certain decisions. Understanding participants' responses ahead of a decision, should help the initial decision maker make better decisions. It is applicable in areas such as:open sourcedevelopment. Freerider issues forexample. Should you contribute resources when somone else may benefitwithout contribution?standardssetting. Should you cooperate with your competitors to help expand andstandardize the marketplace?dynamicpricing. Should you bid at a price point, and will that create a higherbid from someone else?competitor reactions to decisions. When making marketing decisions, youcannot only analyze how your customers may respond without considering howyour competitors will respond, as this will in turn impact your customers.A popular game theory model, for a non-zero sum situation, is the prisoners dilemma. Cushion theoryCushion theoryThe theory that a stock with many short positions taken in it will rise, because these positions must be covered by the stock. Further SuggestionsProduct cycle theoryTrade theory Purchasing power parity theory Expectations theory of forward exchange rates New Trade Theory Dow theory efficient market theory Labor theory of value Short interest theory Preferred habitat theory Elliott Wave Theory capital market theory Normal backwardation theory Dependency Theory Modern portfolio theory Bicycle Theory Greater fool theory Dow dividend theory Local expectations theory Agency theory Bubble theory Game theory Efficient markets theory(EMT) Dow Theory Odd lot theory |
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