Archives: Terms

### Definition of the Mincer Earnings Function The Mincer earnings function is an economic equation used to analyze the relationship between an individual’s earnings and their educational attainment alongside their experience in the labor market. Developed by Jacob Mincer in the 1970s, this model has become a foundational element in […]

Definition of Metzler Paradox The Metzler Paradox refers to a counterintuitive situation in international trade economics where an increase in the tariff on imports actually decreases the price of the imported good in the importing country’s market. Named after Lloyd Metzler, this paradox challenges the conventional wisdom that tariffs uniformly […]

Definition of Methodenstreit The Methodenstreit, translating to “method dispute” or “methodological dispute,” refers to a significant debate within the field of economics that occurred primarily between the German Historical School and the Austrian School of Economics towards the end of the 19th century. This fierce debate revolved around the appropriate […]

Definition of Metcalfe’s Law Metcalfe’s law posits that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2). Essentially, it suggests that the utility of a network grows exponentially as the number of users increases. This concept is especially […]

### Merger Simulation #### Definition of Merger Simulation Merger simulation is an analytical tool used by economists and antitrust authorities to assess the potential competitive effects of a merger or acquisition between firms in the same market. It employs quantitative models to predict changes in market structure, pricing, product variety, […]

Definition of Menu Cost Menu cost refers to the cost associated with changing the prices of goods and services in response to market fluctuations. This term originally comes from the literal cost of reprinting menus in a restaurant but extends to all costs involved in adjusting prices, such as the […]

Definition of Mental Accounting Mental accounting refers to the psychological process by which individuals categorize, evaluate, and keep track of their financial activities, often leading them to treat money differently based on its source or intended use. This cognitive behavior influences how people spend, save, and invest their money. Individuals […]

It seems your request was cut off before you could provide details on “Meade Conflict.” Without specific information, I’ll assume you’re referring to a concept related to the economist James E. Meade and his work on economic theory, possibly touching on trade-offs in economic policy or conflicts between different economic […]

Definition of Mayfield’s Paradox Mayfield’s Paradox describes the counterintuitive phenomenon where, in some circumstances, efforts to improve a situation may actually exacerbate the problem. Named after its identifier, this paradox highlights a critical aspect of decision-making and strategy in economics, business, and beyond: the importance of understanding complex system dynamics […]

Definition of the Matthew Effect The Matthew effect, often encapsulated by the phrase “the rich get richer and the poor get poorer,” refers to the phenomenon where individuals, businesses, or countries that possess wealth and resources tend to accumulate more over time, while those without much find it increasingly difficult […]