Goldilocks Effect On The Economy:
The RBI’s growth and inflation forecasts indicate a Goldilocks Effect on the economy by the second quarter of the next fiscal year.
- Goldilocks Effect or the Goldilocks Principle, is the premise that people are inclined to seek ‘just the right’ amount of something.
- People prefer something that is neither too extreme nor too moderate but falls within an optimal or desirable range, fitting their specific needs or preferences.
- The concept is derived from the children’s story of Goldilocks and the Three Bears, where Goldilocks preferred the porridge, chair and bed that were neither too hot nor too cold, too big nor too small, but just right.
- It has a place in several fields and disciplines. It applies to elements of psychology, hard sciences, economics, marketing and engineering, and each one has its own twist on how the principle is applied.
- Goldilocks Pricing is one of the effect’s more prominent applications. It’s a psychological pricing strategy that rests on the concepts :
- Product differentiation
- Comparative pricing