DefinitionThe efficient-market hypothesis is a theory in financial economics that states that asset prices fully reflect all available information. A direct implication is that...
What is 'X-Efficiency' X-efficiency is the degree of efficiency maintained by individuals and firms under conditions of imperfect competition. According to the...
What is 'Radner Equilibrium' A theory suggesting that if economic decision makers have unlimited computational capacity for choice among strategies, then even...
Creative destruction, sometimes called Schumpeter's gale, is an idea people studying economics theory say may lead to innovation in the business cycle. Karl Marx...
Definition
The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes. Management consultant Joseph M. Juran...