Organizational behavior is the academic study of how people interact within groups, and its principles are applied primarily in attempts to make businesses more efficient.
An overreaction in the financial markets is when securities become overbought or oversold for psychological reasons rather than for fundamental reasons.
Reflexivity is the theory that positive feedback loops between expectations and economic fundamentals can cause price trends that deviate significantly and persistently from equilibrium prices.
Revealed preference, a theory proposed by the American economist Paul Anthony Samuelson in 1938, states that consumer behavior, if their income and price of a product remain constant, is the best indicator of their preferences.
Revealed preference theory works on the assumption that consumers are rational.