greater fool theory

proper noun

Theory that the price of an object is determined by irrational beliefs and expectations of market participants, rather than intrinsic value; i.e. that one can make money by buying something for the sole reason of selling it to some one else for a higher price.

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Meanings

proper noun
  1. economicsTheory that the price of an object is determined by irrational beliefs and expectations of market participants, rather than intrinsic value; i.e. that one can make money by buying something for the sole reason of selling it to some one else for a higher price.
Cite this entry
APA

greater fool theory. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/greater%20fool%20theory

MLA

“greater fool theory.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/greater%20fool%20theory. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “greater fool theory,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/greater%20fool%20theory.

Source: greater fool theory on Wiktionary, CC BY-SA 4.0.