The World's Best Book Summaries
What’s a game theory? Who was the first person to use the game theory to explain economic behavior? Game theory is a discipline that is adjacent to economics and mathematics. The mathematician John von Neumann created much of the theory behind modern game theory in his 1944 book Theory of Games and Economic Behavior. Keep reading to learn more about the economic game theory, explained in simple terms.
How does the stock market economy work? Why are so many people deterring from buying shares? The stock economy is a sector of the economy that is shrouded in secrecy. Complex jargon scares potential investors who don’t have a background in economics or finance. This article will help to lift that curtain. It will explain how stock prices are valued and why companies hire economists to help them play the stock market.
What are information gaps in economics? Are seller-buyer information gaps good for the economy? When one party doing a business deal has more information than the other party, there is an information gap. Usually, the information gap is such that the seller has more information than the buyer. When this is the case, the market is not running efficiently. This article explains the information gap, discusses how to close it, and examines how to solve broken health care systems using these economic principles.
What’s a perfect market in economics? Are perfect markets even possible in the real world, or is it all just theory? Even though we rarely find perfect markets in the real world, it’s useful to understand the idea of perfect markets because economists usually start there when they see imperfections. Economists attempt to remove these imperfections. In this article, we’ll discuss the effects of imperfections in the marketplace, or externalities, and discuss when governments should step in to prevent negative externalities.
How does the free-market economic system work? How are goods priced in such an economy? In the free-market economic system, products are generally almost equal to the marginal cost, or how much it costs to keep a business afloat. Plus, modest profits convince investors to keep their money in the business than in savings. This article takes a look at how the free-market system and its implications for taxes and non-market goods.
Why do brands charge different prices for different customers for nearly identical products/services? Is the higher-priced product really significantly better than its lower-tier option? It’s no secret that companies can charge different prices for different customers. Once you realize that sellers base their prices in part on what they think you’re willing to pay, you can make better decisions about what you buy, where you buy it, and how much to spend on it. In this article, we’ll explore how companies can charge different prices to different customers, and what it means for you as a buyer.
How can emotions affect your relationship with money? How can you have a positive emotional relationship with money? Negative emotions about money like envy, fear, guilt, and shame will stop you from pursuing money-making opportunities and make you money repellent. Constantly visualizing wealth and finding joy in what you do will help you develop a positive emotional relationship with money. Read on to discover how to develop a great emotional relationship with money.
Are you charting your monthly investment income? Have you projected your crossover point to know when you might reach financial freedom? Getting a handle on your monthly investment income and crossover point are key aspects of achieving financial independence. In this article, you’ll learn the two steps of charting your investment income and discover how to project your crossover point. Read more to get the details.
Does your to-do list include transforming your relationship with money? Would you know where to start? In Your Money or Your Life, Vicki Robin and Joe Dominguez discuss how transforming your relationship with money can lead to financial independence. They outline four aspects of financial independence thinking, two speeds of application, and three styles of finance management. Read more to learn about transforming your relationship with money.
Do you know what passive income and socially responsible investing are? What about dividends? Would you like to understand investing better? If you want to make sure you have enough money for the rest of your life, you’ll benefit from understanding investing terminology and basic principles. Knowing the ins and outs of risk tolerance, investment fees, and the like will give you—and your money—an advantage. Read on to understand investing better.