Archives: Terms

Definition of Separating Equilibrium A separating equilibrium is a concept from game theory and economics that describes a situation in which different types of agents or players in a market or strategic interaction choose distinctly different actions or strategies based on their private information. This separation of actions or strategies […]

Definition of Separable Utility Function A separable utility function is a specific form of utility function in economics that integrates preferences for different goods or services in a way that the marginal rate of substitution between any two goods depends only on the quantities of those goods and not on […]

Definition of Sensitive Sectors Sensitive sectors refer to specific areas of the economy that are often subject to extensive regulation and oversight due to their importance and potential impact on national security, public welfare, or economic stability. These sectors typically include industries such as defense, telecommunications, finance, healthcare, and energy. […]

Definition of Selling Costs Selling costs refer to the expenses incurred by businesses to promote and sell their products or services. These costs are essential for creating awareness, generating interest, and convincing potential customers to make a purchase. Selling costs include advertising, marketing, sales promotions, commissions, and other expenses related […]

Definition of Seller’s Market A seller’s market is a market condition characterized by a scarcity of supply relative to demand, giving sellers an advantage over buyers. In such a market, the number of buyers interested in purchasing goods or services exceeds the available supply, which often leads to higher prices […]

Definition of Seller Concentration Seller concentration refers to the extent to which a small number of firms or businesses control a large share of the market in a particular industry or sector. It is often used as an indicator to understand the level of competition within a market. High seller […]

Definition of Self-Regulation Self-regulation refers to the ability of individuals, companies, or industries to control and govern their own behavior and actions without external interference or imposition. In economic terms, it often revolves around adherence to rules, standards, and practices established internally rather than mandated by governmental or external authorities. […]

Definition of Self-Fulfilling Expectations Self-fulfilling expectations, also known as self-fulfilling prophecies, refer to predictions or beliefs that cause themselves to become true, primarily due to the behavior inspired by these predictions or beliefs. In economics, this phenomenon typically manifests when individuals or groups act in ways that are aligned with […]

Definition of Self-Financing Self-financing refers to the method of funding operations, projects, or ventures using one’s own resources rather than seeking external financial support through loans or investors. This approach allows individuals or organizations to maintain complete control over their initiatives without incurring debt or diluting ownership. Example Consider a […]

Definition of Self-Correcting System A self-correcting system in economics refers to a market or economy that has inherent mechanisms to restore equilibrium after experiencing a shock or disturbance. Essentially, it describes the ability of supply and demand to adjust to changes and bring markets back to their natural state without […]