Markets, strategy and negotiation
Open a theme, then select a word or phrase for its meaning, example and pronunciation.
1. Incentives and allocation (20 entries)
- a negative externality
- a distortionary incentive
- an implicit subsidy
- an equilibrium price
- diminishing marginal utility
- a price floor
- allocative efficiency
- a principal-agent relationship
- a marginal social cost
- adverse selection
- productive efficiency
- a positive externality
- the tragedy of the commons
- an opportunity cost of capital
- a free-rider problem
- cross-subsidisation
- expenditure
- price discrimination
- surplus
- the incidence of a tax
2. Money and financial risk (20 entries)
- tail risk
- asymmetric risk
- counterparty exposure
- a refinancing risk
- a liquidity squeeze
- counterparty risk
- deposit insurance
- a liquidity buffer
- liquidity mismatch
- a capital buffer
- a term premium
- quantitative tightening
- a sunk investment
- capitalise expenditure
- maturity transformation
- a non-performing loan
- contagion
- a run on a bank
- prudential supervision
- amortise an investment
3. Markets and bargaining power (20 entries)
- a controlling interest
- a secondary offering
- an orderly wind-down
- a leveraged buyout
- a poison pill
- a management buyout
- a rights issue
- a white knight
- an activist investor
- a shareholder resolution
- vertical integration
- a minority stake
- a hostile takeover
- break ranks over a deal
- write down an asset
- dilute a shareholding
- asset stripping
- a proxy vote
- ring-fence a liability
- intermediary
4. Implementation and long-term strategy (20 entries)
- a time-consistent policy
- a contingent strategy
- an irreversible commitment
- strategic patience
- a second-best solution
- a high-stakes trade-off
- a pre-emptive move
- a credible commitment problem
- a point of no return
- a holding operation
- a calculated gamble
- an asymmetric payoff
- create a precedent
- restructure
- strategic retreat
- lock in an advantage
- a going concern
- hedge one's bets
- cut one's losses
- throw good money after bad
5. Concessions and deadlock (20 entries)
- a reciprocal concession
- strengthen one's bargaining position
- bargain in earnest
- raise the stakes
- refuse to budge an inch
- a walk-away point
- play hardball
- sweeten the terms
- a face-saving concession
- a zone of possible agreement
- show one's hand
- go to the wire
- a credible outside option
- an eleventh-hour compromise
- a face-saving formula
- give away one's hand
- up the ante
- a reservation price
- blink first
- have someone over a barrel
