Overreaction Definition.

Overreaction is a term used in behavioral economics to describe a situation where people make decisions that are based on emotionally-charged information, rather than on rational thought. This can lead to people making decisions that are not in their best interests, or that are not based on sound economic principles. How can you tell if … Read more

Boomernomics Definition.

Boomernomics definition refers to the study of how the baby boomer generation (those born between 1946 and 1964) behaves in the economy. It encompasses their spending patterns, investment decisions, and overall economic impact. Many experts believe that understanding boomernomics is essential to understanding the current and future state of the economy. After all, baby boomers … Read more

What Is the Bandwagon Effect?

The bandwagon effect is a cognitive bias that refers to the tendency for people to conform to the beliefs or behaviors of a group. This effect is often driven by the desire to fit in or be accepted by others, and can lead people to adopt beliefs or engage in behaviors even if they do … Read more

What Is the Fear and Greed Index?

The Fear and Greed Index is a measurement of how investors feel about the market, with “fear” being represented by a low number and “greed” being represented by a high number. The index is based on seven factors: stock price, volatility, put/call ratio, junk bond demand, Treasury yields, market breadth, and gold price. A reading … Read more

What Is a Dollar Auction?

In a dollar auction, bidders compete to win an auction by paying the lowest price. The winner is the person who pays the lowest price. The losing bidders pay the difference between their bid and the winning bid. For example, imagine that there are two bidders in an auction. The first bidder bids $1. The … Read more

What Does “Investment Multiplier” Mean?

An investment multiplier is an economic term that refers to the increase in economic activity that results from an increase in investment. The multiplier effect occurs when an initial increase in investment leads to a larger increase in economic activity. The investment multiplier is a measure of this effect. The investment multiplier is a key … Read more

What Is Priced Out?

When people talk about something being priced out, they usually mean that it’s too expensive for them. In other words, the price is greater than the value they place on it. This can happen for all sorts of reasons. Maybe the item is in high demand and there’s not enough supply to meet the demand. … Read more