Keynesian

The 'Keynesian beauty contest' is the perfect metaphor for investing in the modern financial market.

a concept developed by economist John Maynard Keynes in 1936 to explain price fluctuations in equity markets

A Keynesian beauty contest [keyn-zee-uhn] is a concept developed by economist John Maynard Keynes in 1936 to explain price fluctuations in equity markets.

price fluctuations in equity markets

A Keynesian beauty contest is a concept developed by John Maynard Keynes and introduced in Chapter 12 of A Keynesian Beauty Contest's work, The General Theory of Employment, Interest and Money (1936), to explain price fluctuations in equity markets.

an early theory in behavioral finance that describes how our perceptions of value can cause irrational fluctuations in supposedly rational systems

The Keynesian Beauty Contest is an early theory in behavioral finance that describes how our perceptions of value can cause irrational fluctuations in supposedly rational systems.

a game in which all the players are asked to pick a number from zero to one hundred

The Keynesian Beauty Contest, as The Keynesian Beauty Contest is known, is a game in which all the players are asked to pick a number from zero to one hundred.

the stock market

In 1936, economist John Maynard Keynes likened the stock market to a beauty contest where judges reward the most popular faces, rather than those they personally find most attractive.

the capital markets

John Maynard Keynes, in the General Theory of Employment, Interest, and Money, famously painted the capital markets as a type of beauty pagent judging contest where the goal was to guess which contestants others would think most attractive-thereby breaking down into an onion-peeling type situation.

One of John Maynard Keynes's concepts

One of John Maynard Keynes's concepts became known as the Keynesian beauty contest.

a simple yet powerful idea that can help you make the best possible decision next time you buy Bitcoin

the Keynesian beauty contest’s a simple yet powerful idea that can help you make the best possible decision next time you buy Bitcoin, or if you’re planning to invest for the first time.

investing as a kind of beauty contest in which the objective is not to select the contestant you think is the most beautiful, but to select the contestant you think the judges will pick as the winner

Lord Maynard Keynes once described investing as a kind of beauty contest in which the objective is not to select the contestant you think is the most beautiful, but to select the contestant you think the judges will pick as the winner.

a common middle class myth that you can work your way up the corporate ladder to the top

a Keynesian beauty contest is a common middle class myth that you can work your way up the corporate ladder to the top.

as a systematic recognition of second-order observation

Keynes’ beauty contest can be interpreted as a systematic recognition of second-order observation: financial operators observe primarily other observers and what they observe.

Keynes’ General Theory

Keynes’ General Theory describes a beauty contest in a newspaper where the goal is to pick the face that the most readers will vote for.

which encapsulates Mr. Buffet's view about how financial market participants behave

In Keynes’s beauty contest—which encapsulates Mr. Buffet's view about how financial market participants behave—each judge is asked to figure out what the average opinion of the other judges is about the most beautiful woman.

a choice of actions to a beauty contest, which purpose — to find not easier most beautiful girl, but also such which will be pleasant

In the market great economist John Keynes compared a choice of actions to a beauty contest, which purpose — to find not easier most beautiful girl, but also such which will be pleasant.