Economics paradoxes Economics paradoxes In economics, the Bertrand paradox describes a situation in which two players reaching a state of Nash equilibrium find themselves with no profits. ...more on Wikipedia about "Bertrand paradox (economics)"
In economics, the Edgeworth paradox describes a situation in which two players cannot reach a state of equilibrium with pure strategies, i.e. each charging a stable price. ...more on Wikipedia about "Edgeworth paradox"
The Ellsberg paradox is a paradox in decision theory and experimental economics in which people's choices violate the axioms of utility theory. It is generally taken to be evidence for ambiguity aversion. The paradox was first discovered by Daniel Ellsberg. ...more on Wikipedia about "Ellsberg paradox"
Gibson's Paradox was the observation that, during the gold standard era, the rate of interest and the general level of prices were observed to be correlated. ...more on Wikipedia about "Gibson's paradox"
Leontief's paradox in economics was the result of an attempt to test the Heckscher-Ohlin theory by Professor Wassily W. Leontief in 1954. Leontief found that the US (the most capital abundant country in the world by any criteria) exported labor-intensive commodities and imported capital-intensive commodities, in contradiction with H-O theory. ...more on Wikipedia about "Leontief paradox"
The paradox of thrift is a paradox of economics propounded by John Maynard Keynes. The paradox states that if everyone saves more money during times of recession, then aggregate demand will fall and will in turn lower total savings in the population. One can argue that if everyone saves, then there is a decrease in consumption which leads to a fall in aggregate demand and thus lead to a fall in economic growth. ...more on Wikipedia about "Paradox of thrift"
The paradox of value (also known as the diamond-water paradox) is the apparent contradiction that, although water is essential to life and diamonds have mostly aesthetic value, the price of water is vastly lower than that of diamonds. Adam Smith propounded on the paradox in The Wealth of Nations. Smith was not the first to note the paradox. Nicolaus Copernicus , John Locke, John Law and others had previously tried to explain the disparity in value between water and diamonds. The theory of marginal utility, an attempt to resolve this paradox, brought about the birth of neoclassical economics. There is no classical solution to the paradox. ...more on Wikipedia about "Paradox of value" http://www.shortopedia.com Is Good For You.
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