DEFINITION of 'Socionomics'

The study of the relationship between social mood and social behavior pioneered by Robert R. Prechter, Jr. Socionomic theory proposes that social mood influences the aggregate character of social actions, such as those found in the economy, financial markets and politics.

BREAKING DOWN 'Socionomics'

Socionomics can be applied to many areas of social activity. The socionomic perspective frequently differs from that offered by conventional observers of society. Prechter has noted the following, for example:

Conventional observers often imply that rising markets make investors optimistic. Socionomic theory proposes that optimistic investors make markets rise.

Conventional observers often imply that recessions result in more cautious business practices. Socionomic theory proposes that more cautious business practices result in recessions.

Conventional observers often imply that scandals outrage the public. Socionomic theory proposes that an outraged public seeks scandals.

RELATED TERMS
  1. Social Choice Theory

    Individual preferences are aggregated to produce a social welfare ...
  2. Social Finance

    Social finance typically refers to investments made in social ...
  3. Socially Responsible Investment ...

    Socially responsible investing looks for investments that are ...
  4. Social Capital

    An economic idea that refers to the connections between individuals ...
  5. Social Impact Bond - SIB

    A contract with the public sector or governing authority, whereby ...
  6. Social Sentiment Indicator

    A measurement based on aggregated social media data that helps ...
Related Articles
  1. Investing

    When Socially Responsible Investing Hurts

    Socially responsible investing can make you feel good but it may not boost your returns.
  2. Financial Advisor

    Social Security's Insolvency and Your Retirement

    The Social Security system could run out of money by 2031. Here's a look at some proposed solutions to the problem and what can be done to prepare.
  3. Retirement

    Will Baby Boomers Bankrupt Social Security?

    Will the massive Baby Boomer generation, now retiring in droves, bankrupt the Social Security System?
  4. Personal Finance

    Social Finance Careers: Creating A Better World

    A financial career can be used to do more than just bring in profits. Find out how to get a career with a more social objective.
  5. Retirement

    How to Fix an Error on Your Social Security Check

    For many seniors, social security benefits checks are their income stream which means the benefit has to be correct. If you spot an error, you can fix it.
  6. Managing Wealth

    Go Green With Socially Responsible Investing

    Find out how morals and ethics can bring you a surprising return.
  7. Investing

    Understanding Social Impact Bonds

    Social impact bonds are powerful investment vehicles for the solving of social issues in a sustainable fashion.
  8. Small Business

    Social Media: High Risk, High Potential Returns

    Carefully selecting social media ETFs can provide you with the opportunity to diversify your portfolio and enjoy financial rewards due to user growth.
  9. Retirement

    Introduction to Social Security

    You've probably contributed to this fund, but will you reap the benefits? Find out here.
  10. Investing

    Socially Responsible Mutual Funds

    It is possible to avoid unethical investments and still profit from mutual funds. Find out how!
RELATED FAQS
  1. What is the Social Security administration responsible for?

    Learn about the Social Security Administration's main responsibilities along with its history, structure and social safety ... Read Answer >>
  2. Why is social responsibility important to a business?

    Take social responsibility seriously, and your business could benefit from happier, more productive staff members while helping ... Read Answer >>
  3. Must I pay Social Security taxes on my earnings after full retirement age?

    Paying Social Security contributions continues even past reaching full retirement age, but that can increase future Social ... Read Answer >>
  4. Why is social responsibility important in marketing?

    Drive consumers toward products and services by prioritizing social responsibility in marketing to enhance the company's ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center