Example
Investors may complain stock movements are the result of manipulation by "algorithms", "wall street" or the "big guys" as opposed to market forces. Such arguments are rooted in facts as large institutional investors, investment banks and algorithms have a great deal of impact on markets. However, claims that prices are "unfair" neglect the intense competition that exists on markets between these large forces such that prices typically represent a good guess at the intrinsic value of a security at a point in time.Notes
Conspiracies do exist but the conspiracy fallacy relates to conspiracies that are mostly hypothetical in that there is little or no hard evidence to support them.Belief in conspiracies may serve some purpose whereby having people willing to seeking out evidence for an unlikely hypothesis may be beneficial to society in some way. This can be viewed as a type of intellectual diversity whereby some people will only believe things that are fully accepted by authoritative sources and others believe authoritative sources have some agenda or faults that make them unreliable.| Overview: Conspiracy Fallacy | ||
Type | ||
Definition (1) | Assuming that highly theoretical conspiracies are factual and concrete. | |
Definition (2) | Viewing a system as rigged when it is in fact highly competitive and open. | |
Related Concepts | ||
