Predictive analytics is a branch of the larger field of data analytics that deals with making predictions about future events or outcomes based on past data. Predictive analytics uses a variety of techniques from statistics, machine learning, and artificial intelligence to make predictions. Predictive analytics is often used in marketing, fraud detection, and risk management. … Read more
The wealth effect definition is when an increase in an individual’s wealth leads to an increase in their consumption. The wealth effect is usually caused by an increase in income, but it can also be caused by an increase in the value of assets such as stocks or real estate. The wealth effect can lead … Read more
Backward induction is a process of reasoning in which one starts from the end of a problem or situation, and then works backwards to the beginning. It is often used in game theory to analyze situations in which players have perfect information (meaning they know all relevant information about the situation, including what other players … Read more
Social Choice Theory is a branch of economics that looks at how people make decisions in groups. It studies how collective preferences are formed and how they are used to make decisions. The theory has been used to study a wide range of topics, including voting, jury decision making, and resource allocation. What is the … Read more
The Shapley value is a concept from game theory that measures the fairness of a particular allocation of resources. It was first proposed by Lloyd Shapley in 1953. The idea is to consider all possible ways in which the resources could be allocated, and then to calculate the average value of each allocation. The allocation … Read more
Self-interest is the motivating force behind an individual’s actions. In other words, individuals act in their own self-interest when they choose the course of action that they believe will best promote their own welfare. Self-interest can be a powerful force in shaping economic behavior. For example, self-interested individuals are likely to work hard in order … Read more
Self-enhancement is a psychological phenomenon whereby people tend to see themselves in a more positive light than is objectively true. This tendency can lead people to make choices that are not in their best interests, or that are not in line with reality. What term is used to describe an individual’s self beliefs and self … Read more
Conflict Theory: Definition, Founder, Examples Who Discovered conflict theory? There is no one single person who can be credited with the discovery of conflict theory. Rather, it is a theory that has been developed over time by a number of different scholars and thinkers. One of the earliest proponents of conflict theory was the German … Read more
