Archives: Terms

Definition of Penetration Pricing Penetration pricing is a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering. The aim is to gain market share quickly and draw customers away from competitors. Once the business has successfully […]

Definition of Peltzman Effect The Peltzman Effect is a theory proposed by economist Sam Peltzman, which suggests that people might tend to take greater risks when they believe that safety measures have been put in place to protect them. This concept is primarily discussed within the context of regulation and […]

Definition of Partnership A partnership is a legal form of business operation between two or more individuals who share management and profits. The individuals in a partnership are personally responsible for the debts and obligations of the business, as well as the actions of the other partners. Unlike corporations, partnerships […]

Definition of Participatory Economics Participatory economics, often abbreviated as “parecon,” is an economic system proposed as an alternative to both capitalism and centrally planned socialism. It emphasizes participatory decision-making as a key mechanism for the allocation of resources and production. The fundamental principles of participatory economics include equity, solidarity, diversity, […]

Unfortunately, you didn’t provide specifics for the “Participation” title, but I will create an extensive glossary post about “Economic Participation” to fit the pattern and educational purpose observed in your previous entries. — Definition of Economic Participation Economic participation refers to the engagement of individuals or groups in the economic […]

Definition of the Paradox of Value The paradox of value, also known as the diamond-water paradox, is a situation that questions why goods that are essential for survival, like water, often have a much lower value in the market than goods like diamonds, which are not necessary for survival. This […]

Definition of the Paradox of Toil The Paradox of Toil refers to a counterintuitive economic theory suggesting that during times of deep recession or deflation, increased efforts by individuals to save more or work harder can actually exacerbate economic downturns. It is a concept rooted in Keynesian economics, which emphasizes […]

The “Paradox of Prosperity” refers to a complex phenomenon where periods of economic growth and wealth accumulation lead to conditions or challenges that may undermine that very prosperity. This paradox can manifest in various ways, reflecting the unintended consequences of success in economies or societies. ### Definition of the Paradox […]

Definition of the Paradox of Flexibility The Paradox of Flexibility refers to the concept that, in certain contexts, allowing for too much flexibility in decision-making or organizational structures can lead to outcomes that are less than optimal. This paradox arises from the idea that while flexibility is generally considered a […]

Definition of the Paradox of Competition The Paradox of Competition refers to the complex and often counterintuitive effects competitive behaviors can have within markets and industries. Generally, competition is seen as a positive force that drives innovation, lowers prices, and improves quality and choice for consumers. However, the paradox lies […]