Tipping theory, though not new, is in the news lately, in reference to our \"rec

Question

Tipping theory, though not new, is in the news lately, in reference to our "recession" (some say "depression"), and how we can get ourselves out of it, whatever we call it.

What is tipping theory? If you've never heard of it, you may research the topic. Then, how would you apply it to any part of our economy? Most important, where does it start? For instance, if you apply the theory to the auto industry, then what would tip new car purchases? Would it be the availability of credit? The number of people employed? Fear, or the lack of it, on the part of consumers?

2)

For the quantitative portions of this class, such as present value, IRR, decision tree analysis, evaluation of options, foreign exchange transactions: What method of teaching, or what types of problem solving, help you to learn the best? What type of teaching or problems solving does not work for you? What would make this particular class even more fun and interesting?

Explanation / Answer

1)

Tipping is the act of providing material private information about a publicly traded company to unauthorized person.

This is an illegal act.

It applies to any industry and it will impact the investors in losing their security.

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