compiled over the years, during study of economics :)
- optimal allocation / allocative efficiency / pareto efficiency - rec. put to most efficient used
- transaction cost - cost of providing for some good or service through the market rather than having it provided from within the firm
- moral hazard - i maybe careless if i knw my car is insured
- asymmetric information - propounded by akerlof - incomplete information
- opportunity cost
- dead weight loss - pure loss. not received by any party in negotiation
- asset specificity
- adverse selection - insurance is needed by people with high risk
- absolute advantage
- comparative advantage
- derived demand
- crowding out- activity a reducing the impact of activity b. so a crowds out b
- creative destruction - schumpeter - in order to continue to maintain excellence and remain competitive, they must adopt the dynamic strategies of discontinuity and creative destruction
- nash equilibrium - sort of best alternative, nothing much else to loose or gain
- zero sum game - a's loss = b's gain. win - loose situation
- internalization -
- externalities
- bounded rationality - rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions
- theory of learning by arrow - learning by doing
- foreclosure - a little short of confiscation
- market power -ability of a firm to alter the market price of a good or service
- external factor endowment - in FDI
- market seeking behaviour
- strategic asset acquiring
- mutual forbearance - edwards - u scratch my back, i scratch urs/ symbiosis
- market myopia
- jensen's free cash flow theorm - cash flow in excess of that required to fund all positive net present value projects, free cash flow must be paid to shareholders if the firm is to maximize value.
- lemons & plums
- signalling effect
- managerial entrenchment - when managers gain so much power that they are able to use the firm to further their own interests rather than the interests of shareholders
- imitation effect - person’s demographic behaviour may be influenced by that among other people in the community, for example because of an inclination to imitate
- dominant logic - dominant general management logic -conceptual framework for thinking about process and result of cognitive simplification in top management
- arms's length price - market transaction
- productive efficiency - how close actual prodn cost is to lowest cost achievable
- post contractual opportunism - bargain after contact finalized
- tapered integration - get input from vertical integration as well as external vendors
- keiretsu - long term informal contract in japan
- tacit knowledge -developed through knowledge / experience - cannot be expressed easily
- hold up problem - specific asset + post contractual opportunism
- monopoly power
- regulatory capture - rent seeking behaviour - extra income by unfair means
- spatial product differentiation - hotelling model - product which might seem to be same, may have some unintentional intangible feature added to them due to market situation.
- reputation effect - in-predation - herd mentality
