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6 Results for Tag: rationality

Rational Expectations Theory

DefinitionIn economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the model's predictions

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

Rationalization

Rationalization What is 'Rationalization' Rationalization is a reorganization of a company in order to increase its efficiency. This reorganization may lead to an expansion or reduction in

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

Satisficing

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

Waterfall Concept

Waterfall Concept What is 'Waterfall Concept' A life insurance plan that provides a tax benefit in regards to intergenerational transfers of wealth. The concept occurs when a tax-exempt in