Opportunity Cost
Opportunity cost, to put it as simply as possible, is the price you have to pay in order to obtain something else. It is what you lose, to gain something else. Opportunity cost is...
Category: Microeconomics
Information asymmetry: The battle for data
One key element that affects how people behave in different situations is the information they have about the issue. But, generally speaking, people do not possess same levels of information. This difference in the...
The Lipstick Effect: what is it all about?
First brought into spotlight by Leonard Lauder, the chairman emeritus of The Estée Lauder Companies Inc., the Lipstick Effect states that during economic hardships and crises, consumers tend to buy more lipstick instead of...
Paradox of Value
Put forth by Adam Smith in “The Wealth of Nations”, the paradox of value tries to explain why luxuries such as diamonds are incredibly expensive, whereas goods such as water which are critical to...
