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<p>[QUOTE=&quot;treehugger, post: 1896439, member: 28451&quot;]From Wikipedia, the free encyclopedia</p><p>Jump to: <a href="http://en.wikipedia.org/wiki/Greater_fool_theory#mw-navigation" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Greater_fool_theory#mw-navigation" rel="nofollow"><u>navigation</u></a>, <a href="http://en.wikipedia.org/wiki/Greater_fool_theory#p-search" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Greater_fool_theory#p-search" rel="nofollow"><u>search</u></a></p><p>The <b>greater fool theory</b> states that the price of an object is determined not by its intrinsic value, but rather by the often irrational beliefs and expectations of market participants.<a href="http://en.wikipedia.org/wiki/Greater_fool_theory#cite_note-1" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Greater_fool_theory#cite_note-1" rel="nofollow"><u>[1]</u></a> A price can be justified by a rational buyer under the belief that another party is willing to pay an even higher price.<a href="http://en.wikipedia.org/wiki/Greater_fool_theory#cite_note-2" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Greater_fool_theory#cite_note-2" rel="nofollow"><u>[2]</u></a><a href="http://en.wikipedia.org/wiki/Greater_fool_theory#cite_note-3" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Greater_fool_theory#cite_note-3" rel="nofollow"><u>[3]</u></a> Or one may rationally have the expectation that the item can be resold to a &quot;greater fool&quot; later.<a href="http://en.wikipedia.org/wiki/Greater_fool_theory#cite_note-4" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Greater_fool_theory#cite_note-4" rel="nofollow"><u>[4]</u></a>[/QUOTE]</p><p><br /></p>

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