Archives: Terms

Definition of Social Choice Theory Social choice theory is a framework for analyzing collective decision-making processes and preference aggregation. It involves examining how individual preferences can be combined to reflect a collective decision, and how societal welfare can be maximized through these decisions. Social choice theory explores the methods and […]

Definition of Snob Effect The snob effect refers to a situation where the demand for a certain good increases as its price rises, and decreases as its price falls, contrary to the law of demand. This behavior is driven by the desire of individuals to own unique or exclusive products […]

Definition of Smihula Waves Smihula waves refer to a theory of long-term technological waves or cycles, proposed by the Slovak economist Daniel Smihula. These waves are identified as consistent patterns that describe technological innovation and economic development over specific periods. Smihula suggested that these technological cycles, similar to the previously […]

Definition of Sisyphism Sisyphism is a conceptual term derived from the myth of Sisyphus, a figure in Greek mythology who was condemned to roll a boulder up a hill only for it to roll back down again, repeating this process for eternity. In economics and philosophy, Sisyphism embodies the idea […]

Definition of Shrinkflation Shrinkflation is a term that describes a reduction in the size or quantity of a product while its price remains the same or increases. This economic phenomenon often goes unnoticed by consumers but effectively results in a price rise per unit of the product. Companies may resort […]

Definition of Shock Therapy Shock Therapy refers to a set of radical and immediate free-market economic reforms aimed at quickly transitioning a country from a centrally planned economy to a market economy. The term is often associated with policies that involve abrupt deregulation, privatization of state-owned enterprises, and liberalization of […]

Definition of Shift Work Shift work refers to a work schedule outside the traditional 9 to 5, Monday through Friday pattern. It includes any arrangement where employees rotate or work fixed schedules that cover 24 hours a day, seven days a week. Common examples include night shifts, early morning shifts, […]

Definition of Shephard’s Lemma Shephard’s Lemma is a principle in economics named after Ronald Shephard, relating to the theory of cost functions. It provides a mathematical formulation that describes how changes in the prices of inputs affect a firm’s cost of producing a given level of output. According to Shephard’s […]

Definition of Service Recovery Paradox The service recovery paradox refers to a situation where a customer’s satisfaction level, following an effective resolution of a service failure, exceeds the satisfaction level they had before the service failure occurred. This paradox suggests that, under certain conditions, service failures, when adequately addressed and […]

Definition of Service Economy A service economy is defined as an economy wherein the primary economic activities involve the provision of services rather than the production of goods. Services include a wide range of activities such as finance, consulting, education, health care, and entertainment. In a service economy, a significant […]