The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

GREATER FOOL THEORY Definition & Legal Meaning

Definition & Citations:

Puts forth the view that any price, as unrealistic as it might be, is warranted if one buyer believes that another buyer will pay an even higher price for the same item. This line of thinking drives stock market and commodity market booms and manias. Busts and paranoias jump in when the bubble pops.

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