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Preferred term

market bubbles  

Definition

  • In a market bubble, a term that came into common use during the South Sea Bubble of 1720, the price of a commodity rises far higher than estimates of a commodity's difficult-to-specify “real value.” The rise is not like a sharp inflationary increase, in that the price of the commodity does not move with the market, but, rather, in response to extraordinary demand. This rise usually occurs after a new product or technology or social opportunity appears and slopes upward rapidly under a demand that appears more like a social contagion than a market exchange. [Source: Encyclopedia of Business Ethics and Society; Market Bubbles]

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https://concepts.sagepub.com/social-science/concept/market_bubbles

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