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Keynesian Experiment: The Explanation
OK, time for an explanation, especially as someone got all four correct answers.
The experiment you have been participating in is what is known as a 'Keynesian Beauty Contest'. Keynes first described it in his 'General Theory of Employment, Interest and Money'. The point of the beauty contest is that it explains movements in share prices.
( Let me explain... )
The experiment you have been participating in is what is known as a 'Keynesian Beauty Contest'. Keynes first described it in his 'General Theory of Employment, Interest and Money'. The point of the beauty contest is that it explains movements in share prices.
( Let me explain... )