Give a personal or family example of the Thomas Theroem.?

Question

Give a personal or family example of the Thomas Theroem.

Answer 1

Classic examples:

If many people in one place follow the false rumour that their bank has gone bankrupt, and all of them go to the bank to withdraw their money, the bank will become bankrupt in reality, even though the crisis began simply as a rumour.

The 1973 oil crisis resulted in the so-called "toilet paper panic." The rumour of an expected shortage in toilet paper—resulting from a decline in the importation of oil—led to people stockpiling supplies of toilet paper. This caused a shortage, which seemed to validate the rumour.

The Beauty Contest Theory, developed by John Maynard Keynes, justifies why the share price does not necessarily develop according to rational expectations. He acts on the assumption that many investors make their decisions not according to their own economic evaluation of the value—for example of a share, but by predicting the estimates of other market participants