14 Results for Tag: choice

Imputed Cost

DefinitionIn economics, an implicit cost, also called an imputed cost, implied cost, or notional cost, is the opportunity cost equal to what a firm must give up in order to use a factor of p

Make-Or-Buy Decision

Make-Or-Buy Decision What is a 'Make-Or-Buy Decision' A make-or-buy decision is the act of choosing between manufacturing a product in-house or purchasing it from an external supplier. In

Rational Behavior

Rational Behavior What is 'Rational Behavior' A rational behavior decision-making process is based on making choices that result in the most optimal level of benefit or utility for the ind

Realization Multiple

Realization Multiple What is a 'Realization Multiple' A realization multiple is a private equity measurement that values the return paid to an investor. The multiple is named after the amo

Rational Choice Theory

DefinitionRational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior. The basic

Rational Pricing

DefinitionRational pricing is the assumption in financial economics that asset prices will reflect the arbitrage-free price of the asset as any deviation from this price will be "arbitraged


DefinitionSatisficing is a decision-making strategy or cognitive heuristic that entails searching through the available alternatives until an acceptability threshold is met. The term satisfi

Scarcity Principle

Scarcity Principle The Scarcity Principle, like other principles of economics, comes from the principles of psychology and behavioral sciences. As per the simplest definition, it states that

General Examination

General Examination What is 'General Examination' A regulatory measure set up to give a detailed examination of all aspects of a bank. The examination is conducted by the governing body of

Target-Date Fund

DefinitionA target date fund – also known as a lifecycle, dynamic-risk or age-based fund – is a collective investment scheme, often a mutual fund or a collective trust fund, designed to
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