market behavior

How markets act

Market behavior describes the collective patterns of buying, selling, and pricing in economic systems.

It encompasses how markets respond to news, sentiment, and external forces: Analysts study market behavior to predict trends.

The term often implies that markets act with a kind of aggregate psychology—exhibiting panic, exuberance, or caution as if they were a single organism rather than millions of individual decisions.

Related

bears · panic · flight to safety · rally · crash · speculation · dead cat bounce · short squeeze · trends · herd · risk appetite · momentum · fluctuation · selloff · frenzy · correction · bubble · irrational

Categories
Opposites
economic coordination mechanism

market behaviorcentral planning

Government directs all production

command economy · state control · planned economy · government intervention · dirigisme

rationality and order

market behaviormarket failure

Inefficient resource distribution

irrational exuberance · market manipulation · herd mentality · panic selling · market panic

scale of economic action

market behaviorconsumer choice

Buyer's range of alternatives

Family

market, behavior, markets, marketed, marketing, marketer, marketable, marketplace, supermarket

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