Archives: Terms

Definition of Cornering a Market Cornering a market refers to the process by which an individual or firm obtains enough control of a particular stock, commodity, or other asset to manipulate its price. This typically involves gaining significant holdings in the asset, thereby reducing available supply and allowing the entity […]

Definition of Core Inflation Core inflation is a measure of the underlying increases in the price level of goods and services over a period, excluding those from the food and energy sectors, which are subject to volatile price movements. By focusing on the more stable components of the consumer price […]

Definition of Coordination Failure Coordination failure occurs when agents in an economy or within a specific market fail to coordinate their actions, resulting in less than optimal outcomes. This can manifest in various forms, including inefficient allocation of resources, underinvestment, or missed opportunities for mutual benefit. Coordination failures are particularly […]

Definition of Cooperative Society A cooperative society, or simply a cooperative, is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. […]

Definition of Cooperative Game A cooperative game is a form of game theory where players work together to achieve a common goal rather than competing against each other. In these games, participants can negotiate, form coalitions, and make binding agreements to share resources, strategies, or benefits in a way that […]

Definition of Cooperation Cooperation refers to the process by which individuals or groups of individuals work together towards a common goal. In the context of economics, it involves collaboration among businesses, governments, and consumers to achieve outcomes that would be difficult or impossible to attain independently. Cooperation can take various […]

Definition of Convex Preferences Convex preferences in economics refer to a specific type of consumer preference structure that implies a desire for diversification. In simpler terms, it means that a consumer would prefer a mix of goods rather than having more of a single good. The concept of convexity is […]

Definition of Convertible Debenture A convertible debenture is a type of long-term debt issued by a company that can be converted into a specified number of shares of the company’s stock at certain times during the debenture’s life, usually at the discretion of the debenture holder. It is a hybrid […]

Definition of Convertible Currency A convertible currency is a type of currency that can freely be exchanged for another country’s currency on the foreign exchange market. Unlike non-convertible or “soft” currencies, convertible, or “hard” currencies, are characterized by their stability and the fact that they are widely accepted for international […]

Definition of Convertibility Convertibility refers to the capability of a currency to be readily exchanged for another currency on the foreign exchange market without restrictions or penalties. It signifies the ease with which a country’s currency can be traded for another country’s currency at market exchange rates. Convertibility is a […]