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Economic Theory

Definition

Economic Theory refers to a set of principles and models used to explain the production, distribution, and consumption of goods and services. Within the digital asset sphere, these theories provide foundational concepts for understanding market behavior, incentive structures, and resource allocation within blockchain networks. Concepts such as supply and demand, game theory, and monetary policy are frequently applied to analyze tokenomics and protocol design. It offers analytical tools to predict outcomes and assess the efficiency of decentralized systems.