Switching Costs

Switching Costs: Definition – Explanation – Impact

What Are Switching Costs? Switching costs are the barriers encountered when changing brands, services, or vendors. They include financial, effort, and time-based costs.  Switching costs generally refer to what a consumer incurs as a result of changing brands, suppliers, or products. The most obvious switching costs are monetary in nature.  However, […]

In-house financing

In-house Financing Definition – Explanation – Example

What Is In-House Financing? In-house financing occurs when a company offers a loan to a client in order for them to acquire its goods or services. In-house financing reduces the firm’s dependency on the banking sector to provide monies to the client in order for the transaction to be completed. […]

FLP

FLP: Family Limited Partnership Agreements – What to Know

What Is an FLP – Family Limited Partnership? A Family Limited Partnership (FLP) is a type of business organization in which family members pool their money to manage a company enterprise. According to the specific partnership operating agreement, each family member purchases units or shares of the firm.  As a […]

Gox

Gox – What is Mt Gox? What You Should Know About Crypto Exchanges

What Was Mt. Gox? Mt. Gox was a cryptocurrency exchange located in Tokyo, Japan, that operated from 2010 until 2014. At its height, it accounted for more than 70% of all Bitcoin transactions. Although it is most frequently referred to as Mt. Gox, the exchange is also known as MtGox […]

Shapley Value

Shapley Value: Definition – Overview – Applications – Examples

What Is the Shapley Value? The Shapley value is a concept drawn from cooperative game theory.  It is used to assign a value to a player’s participation which corresponds to the eventual result of the game. Assigning value includes equitably allocating both advantages and costs among the numerous individuals in […]

trimmed mean

Trimmed Mean: Definition – Explanation – Example

What Is a Trimmed Mean? A trimmed mean is a form of averaging in which a specified fraction of the greatest and smallest values are removed before computing the mean. The trimmed mean is calculated after deleting the given outlier data using a conventional arithmetic averaging algorithm. The use of […]