What is a Prisoner’s Dilemma? A prisoner’s dilemma is a decision-making and game theory paradox illustrating that two rational individuals making decisions in their own self-interest cannot result in an optimal solution. The paradox was developed by mathematicians M. Flood and M. Dresher in 1950, and the modern interpretation was conceptualized by Canadian mathematician A.W. Tucker. The…
What is Game Theory? Game theory is a mathematical framework developed to address problems with conflicting or cooperating parties who are able to make rational decisions. The theory primarily deals with finding the optimal rational decision in various scenarios. Game theory is a relatively new discipline. Modern game theory was introduced in the works of…
What are Employee Wellness Programs? Employee wellness programs are programs undertaken by an employer in order to improve employee health and also to help individual employees overcome particular health-related problems. The employer can offer compulsory employee training, staff seminars, or even work with a third-party provider offering a variety of wellness programs. Employees are invaluable…
What are Metrics? Metrics are a system of measurement or related measures that facilitate the quantification of a specific characteristic. It is a decimal measurement system that is internationally accepted. Business Uses of Metrics There are different types of metrics for different disciplines, which include business, science, mathematics, physics, and engineering. Metrics communicate information that…
What is Negative Goodwill? The negative goodwill (NGW) amount, also known as the “bargain purchase” amount, is the difference between the purchase price paid for an asset and its actual fair market value. Negative goodwill is an accounting principle that occurs when the price paid for an asset is lower than its value in the…
What is the National Registration Database (NRD)? The National Registration Database (NRD) is a web-based registration system for individuals and companies whose businesses include trading, advising, or underwriting of financial securities. The NRD allows such businesses to register online by filling forms electronically and is only accessible to authorized personnel. History of the…
What is the National Futures Association (NFA)? The National Futures Association (NFA) is a self-regulatory organization that regulates the U.S. derivatives industry and provides investors with protection by ensuring that member firms employ industry best practices and meet regulatory requirements. The NFA is an independent, non-profit organization and it is funded by membership and assessment…
What is an Assumable Mortgage? An assumable mortgage is a mortgage that can be transferred from the current owner of the property to the buyer, with the terms that were agreed upon originally. In other words, the buyer is able to “assume” the owner’s mortgage, eliminating the need for raising funds through new debt. How…
What is Caveat Emptor? Caveat emptor is a Latin phrase that is translated as “let the buyer beware.” The phrase describes the concept in contract law that places the burden of due diligence on the buyer of a good or service. Caveat emptor is a fundamental principle in commerce and contractual relationships between a buyer…
What is Appreciation? Appreciation is an increase in the value of an asset over time. The term is widely used in several disciplines, including economics, finance, and accounting. In accounting, appreciation refers to the positive adjustment made to the initially booked value of an asset. Moreover, accountants determined additional criteria to define the concept: The…
