Search results
Results From The WOW.Com Content Network
e. Social exchange theory is a sociological and psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits. The theory also involves economic relationships—the cost-benefit analysis occurs when each party has goods that the other parties value. [1]
The majority of costly signaling explanations involve behaviors that broadcast beneficial traits about oneself to others. [17] In many instances, these signals are expected to be directed towards potential mates, with males often thought to benefit more from such signaling due to their relatively low levels of investment in offspring leading to greater fitness benefits in having multiple partners.
An important part of standard cost accounting is a variance analysis, which breaks down the variation between actual cost and standard costs into various components (volume variation, material cost variation, labor cost variation, etc.) so managers can understand why costs were different from what was planned and take appropriate action to ...
The behavior of both costs and revenues is linear throughout the relevant range of activity. (This assumption precludes the concept of volume discounts on either purchased materials or sales.) Costs can be classified accurately as either fixed or variable. Changes in activity are the only factors that affect costs.
Consumer behaviour is the study of individuals, groups, or organisations and all the activities associated with the purchase, use and disposal of goods and services. Consumer behaviour consists of how the consumer 's emotions, attitudes, and preferences affect buying behaviour. Consumer behaviour emerged in the 1940–1950s as a distinct sub ...
To construct an optimality model, the behavior must first be clearly defined. Then, descriptions of how the costs and benefits vary with the way the behavior is performed must be obtained. Examples of benefits and costs include direct fitness measures like offspring produced, change in lifespan, time spent or gained, or energy spent and gained.
Example of psychological pricing at a gas station. Psychological pricing (also price ending or charm pricing) is a pricing and marketing strategy based on the theory that certain prices have a psychological impact. In this pricing method, retail prices are often expressed as just-below numbers: numbers that are just a little less than a round ...
One important further refinement of the evolutionary game theory model that has economic overtones rests on the analysis of costs. A simple model of cost assumes that all competitors suffer the same penalty imposed by the game costs, but this is not the case.