Behaviour Quote by Joan Robinson
“But, as soon as speculators become an important influence in the market, their business is to speculate on each others behaviour.”
About This Quote
Source Article: "The Economics of Speculation" by Joan Robinson, 1933
When speculators dominate a market, they end up betting on each other's actions rather than fundamentals.
In simple terms: Speculators bet on each other's moves.
Key Takeaway
Watch for herd behavior in markets.
Themes
markets
speculation
behavior
economics
Mood
analytical
cautious
inquisitive
Type
economic
financial
When to use this quote
- investment decisions
- policy making
- financial analysis
- trading strategies
Key Concepts
game theory
behavioral finance
market dynamics
Questions to Reflect On
- What signs indicate a market is driven by speculation?
- How can regulators mitigate speculative bubbles?
A Different Perspective
Speculation can also provide liquidity.
![“[In 1889] the last big tract of Indian land was declared open for settlement, in Oklahoma. The claimants and the speculators mounted their horses and lined up like trotters waiting for a starting gun. The itchy ones jumped the gun and were ever after known as Sooners-and Oklahoma was thereafter…” quote by Alistair Cooke](https://sms4smile.com/quotes/img-quotes/245/alistair-cooke-9876_bigs_in-1889-the-last-big-tract-of-indian-lan_243366.jpg)
![“The very nature of economics is rooted in nationalism. ... It [was] developed ... in the hope of throwing light upon questions of policy. But policy means nothing unless there is an authority to carry it out, and authorities are national.” quote by Joan Robinson](https://sms4smile.com/quotes/img-quotes/eba/joan-robinson-11438_authority_the-very-nature-of-economics-is-rooted-i_15974.jpg)
