LEGACY HEDGE
A hedge that a firm holds for a prolonged period of time. Commodity companies (such as gold and oil producers) oftentimes have legacy hedges on their reserves, which gives them more stable stream of earnings. Legacy hedge provide price guarantees. Depending on the market prices movements over time, this can be an extremely valuable or negative for the company.
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Tit for Tat
Game theory mechanism subject to a payoff matrix similar to a prisoner’s dilemma. Anchored on the concepts of retaliation and altruism, this ...
Nonsegregated Disclosures
Information that must be presented legally anywhere in a lease agreement. These are required by the Federal Reserve Board Regulation M. The lease a ...
Product Line
A series of related products which are all made or manufactured by the same company.
Behavioral Economics
The scientific study on how the mind thinks and how each person reacts as it relates to the process of decision making in economics of individuals ...
Infant-Industry Theory
A theory stating the emerging domestic industries must be protected against foreign competition until they become established and mature. In econom ...
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