Cart (Loading....) | Create Account
Close category search window
 

Explaining booms, busts, and errors [microeconomics]

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

1 Author(s)

How will I explain dot-bombs to my kids? A dozen years from now my children might be old enough to understand complex human behavior. Yet I anticipate that they won't look back on today's events with awe. Rather, they will view them as history, with the disdain that comes with twenty-twenty hindsight. Why did so many Internet-related firms lose so much money? To be sure, the irrational exuberance of the various participants is part of any explanation. However, that alone seems an unsatisfying answer. Many analysts thought companies and their investors were behaving reasonably. Tens of thousands of people thought that dot-coms were creating economic value. As the stories of economic loss roll in, three systematic errors common to many of the players emerge. Participants made errors in misforecasting adoption behavior, by underestimating operational requirements, and having overoptimistic expectations of success. Although all these errors arose from exuberance, only the last looks irrational. Understanding these errors will help us comprehend the origins of business booms and busts, a fact of life in technology markets

Published in:

Micro, IEEE  (Volume:21 ,  Issue: 5 )

Date of Publication:

Sep/Oct 2001

Need Help?


IEEE Advancing Technology for Humanity About IEEE Xplore | Contact | Help | Terms of Use | Nondiscrimination Policy | Site Map | Privacy & Opting Out of Cookies

A not-for-profit organization, IEEE is the world's largest professional association for the advancement of technology.
© Copyright 2014 IEEE - All rights reserved. Use of this web site signifies your agreement to the terms and conditions.