Semantics is the study of how words convey meaning. Formalist theory views meaning as content within language, while cognitive theory views meaning as content within the context of language. Theories attempt to explain how humans understand expressions not directly related to memory, known as the projection problem. Both theories may take a truth-based approach to […]
Politeness theory suggests that people have a social self-image or “face” that they protect through various politeness strategies. There are positive and negative faces, and the strategy used depends on the relationship between the speaker and listener. Face-threatening acts can be positive or negative, and there are four politeness strategies: bald on record, positive courtesy, […]
The product life cycle theory compares the stages of a product’s development and sales to the stages of organic life cycles, including birth, growth, maturity, and decline. Additional stages, such as saturation, can be included. The theory is based on the development of organic life, with a product’s birth being its introduction and its decline […]
Game theory is a branch of mathematics that analyzes strategic situations and has applications in various fields. It reduces complex situations to basic “games” to predict outcomes. The prisoner’s dilemma is a popular example, where confessing is the smartest decision. Other games include Cake Cutting, Stag Hunt, and Ultimatum Game. Games are divided into zero-sum […]
Stigler’s economic regulation theory explains how interest groups use government regulatory power to advance their economic needs. Large corporations tend to win conflicts with smaller organizations and consumers due to their greater political power. The theory examines the methods of government regulation, including direct subsidies and protectionism. Critics argue that regulators have their own motivations […]
Expectancy theory explains how people choose actions to achieve desired outcomes. It focuses on valence, instrumentality, and expectancy, and recognizes individuality. It was proposed by Victor Vroom and differs from Maslow’s hierarchy of needs and Herzberg’s two-factor theory. Employers can motivate employees by ensuring rewards are valued, certain, and achievable. Expectancy theory is a behavioral […]
Game theory analyzes competitive situations where one player’s actions affect the outcome for others. Dominant strategies give the greatest benefit regardless of others’ actions. Strategies can be weakly or strongly dominant, and identifying them requires understanding of math and economics. The Nash equilibrium predicts situations where players have no incentive to change their strategy. Dominant […]
The disengagement theory suggests that as people age, they tend to withdraw from society, but this is controversial. Critics argue that disengagement is often enforced, not voluntary, and can lead to isolation. The theory also justifies barriers to participation in social activities for older people and ignores the history of caring for older people differently […]
Social exchange theory suggests that humans make social decisions based on perceived costs and benefits, valuing relationships to determine benefits. People evaluate social situations based on what they will have to give up and the benefits they can get in return. The theory emphasizes personal satisfaction within a relationship and the role of individual motivation. […]
Price theory explains why consumers buy goods or services from a particular company based on the agreed price and intrinsic value. External factors such as competition, demand, and market size also affect price. A supply and demand graph shows the equilibrium point where companies and consumers agree on the price. Companies are willing to increase […]
Stakeholder theory suggests that a business’s purpose goes beyond generating profit for owners and investors, as it impacts the lives of various people. Anyone with a direct financial interest in a business can be considered a stakeholder, including employees, suppliers, and the community. The theory’s application varies based on the specific factors surrounding a company. […]
Organizational design theory outlines how a company structures itself for normal activities. The type of goods produced and sold can dictate the design, with tall and flat structures being two general theories. Other important elements include control, authority, and accountability. Companies can seek external help if they lack knowledge on this topic. Organizational design theory […]
Econometric theory uses math, stats, and economics to create models for business studies. Different types include introductory, spatial, and nonparametric estimation, with each relying on collected data. Econometrics aims to provide the best data for making decisions with the least risk and greatest rewards. Econometric theory uses a mix of mathematics, statistics, and economics to […]
Crisis theory in Marxian economics examines the causes of economic crises, including the tendency for boom and bust cycles, and the role of falling profit rates in triggering crises. Some economists believe capitalism is unsustainable due to this theory, and interventions such as nationalization may be necessary. Understanding competing economic theories is important for analyzing […]
Cultivation theory suggests that long-term television viewing distorts the viewer’s perception of reality. George Gerbner developed this theory and also introduced the mediocre world syndrome. He believed that children were more easily influenced by television and offered three principles for media literacy to combat negative effects. Gerbner was a media researcher and dean of the […]
Labeling theory examines how society constructs norms and labels individuals who deviate from them, affecting their behavior. It is used in sociology, criminology, and mental illness studies. The label becomes a self-fulfilling prophecy, as seen in criminal behavior and mental illness. It has also been applied to homosexuality, sparking controversy. Labeling theory is a sociological […]
The Major Fools Theory is the belief that an overpriced investment will eventually be bought by a “major crowd” at an even higher price. This can work during economic bubbles, but can lead to losses and market crashes when the bubble bursts. When many investors buy into the theory, it can create its own bubbles […]
Communication theory explains how humans communicate meaningfully. It can come from various fields, including psychology, biology, and philosophy. Theories focus on the process of conveying meaning or the cultural effects of communication. The purpose of communication varies among theorists, with some viewing it as an exchange of ideas and others examining the flow of information. […]
Role theory examines how the roles people play in society affect their interactions. Each role has specific obligations, and people fulfill them subconsciously. Roles are not necessarily chosen by individuals, and conflicts can arise when people disagree with their assigned role. Understanding role theory can help individuals overcome challenges in their personal and professional lives. […]
Feature integration theory explains how people combine separate features of an object to create a complete perception, with attention being crucial. The theory has two stages: preattentive and focused attention. Training in this theory can improve abstract reasoning and attention. Feature integration theory is a psychological theory that describes how a person brings together the […]
