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Related Concept Videos

Social Exchange Theory01:26

Social Exchange Theory

223
As formulated by John Thibaut and Harold Kelley, Social Exchange Theory explains human relationships as economic-like exchanges that maximize rewards and minimize costs. This theory suggests that individuals engage in relationships to gain benefits and reduce burdens, similar to economic transactions. It has been widely applied to various types of relationships, including romantic, professional, and social interactions.Rewards and Costs in RelationshipsRelationship rewards include emotional...
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Equity Theory01:26

Equity Theory

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Equity theory explains how our sense of fairness influences the dynamics of close relationships. Rooted in social psychology, the theory posits that individuals evaluate fairness by comparing the ratio of their contributions to the rewards they receive. Relationship satisfaction is highest when these ratios are perceived as balanced between partners, promoting mutual reciprocity and a sense of justice.Equity vs. Equality in RelationshipsEquity is distinct from equality. Fairness does not...
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Ion Exchange01:17

Ion Exchange

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Ion exchange chromatography separates charged molecules from a solution by reversibly exchanging them with mobile, or 'active', ions associated with the oppositely charged stationary phase. This method can be used to separate ions, soften and deionize water, and purify solutions. The polymers comprising the ion-exchange column are high-molecular-weight and chemically stable polymers, crosslinked to be porous and essentially insoluble. They are also functionalized with either acidic or...
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Actuarial Approach01:20

Actuarial Approach

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The actuarial approach, a statistical method originally developed for life insurance risk assessment, is widely used to calculate survival rates in clinical and population studies. This method accounts for participants lost to follow-up or those who die from causes unrelated to the study, ensuring a more accurate representation of survival probabilities.
Consider the example of a high-risk surgical procedure with significant early-stage mortality. A two-year clinical study is conducted,...
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Social Exchange Theory02:06

Social Exchange Theory

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We have discussed why we form relationships, what attracts us to others, and different types of love. But what determines whether we are satisfied with and stay in a relationship? One theory that provides an explanation is social exchange theory. According to social exchange theory, we act as naïve economists in keeping a tally of the ratio of costs and benefits of forming and maintaining a relationship with others (Rusbult & Van Lange, 2003).
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Capillary Exchange01:28

Capillary Exchange

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The cardiovascular system's chief role is to disseminate gases, nutrients, waste, and other substances to the body's cells. Small molecules like gases, lipids, and lipid-soluble substances directly diffuse through capillary wall endothelial cell membranes. Glucose, amino acids, and ions, including sodium, potassium, calcium, and chloride, use transporters for facilitated diffusion via membrane-specific channels. Glucose, ions, and bigger molecules may also pass through intercellular...
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Related Experiment Video

Updated: Dec 11, 2025

The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm
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ICO investors.

Rüdiger Fahlenbrach1,2, Marc Frattaroli1

  • 1Swiss Finance Institute @ EPFL, Quartier Unil-Chamberonne, Extranef 211, 1015 Lausanne, Switzerland.

Financial Markets and Portfolio Management
|November 22, 2021
PubMed
Summary

Successful initial coin offerings (ICOs) attract many investors, but most contribute small amounts. Despite lacking investor protections, ICO participants see positive average returns driven by cryptocurrency value increases.

Area of Science:

  • Finance
  • Cryptocurrency Studies
  • Blockchain Technology

Background:

  • Initial Coin Offerings (ICOs) have emerged as a novel fundraising mechanism in the digital asset space.
  • Understanding investor behavior and outcomes in ICOs is crucial for assessing their viability and risks.
  • Traditional investor protections are often absent in the ICO market.

Purpose of the Study:

  • To analyze the characteristics and investment strategies of participants in successful Initial Coin Offerings (ICOs).
  • To evaluate the financial returns and risks associated with ICO investments.
  • To compare ICO investor protections with those in traditional early-stage financing.

Main Methods:

  • Detailed analysis of investor data from successful Initial Coin Offerings (ICOs).
Keywords:
FinTechIndividual investorsInitial coin offering

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  • Examination of contributor numbers, investment amounts, and token holding periods.
  • Assessment of returns at 9 months post-ICO, considering cryptocurrency market dynamics.
  • Main Results:

    • Successful ICOs typically involve an average of 4700 contributors.
    • Median participants make small contributions, with many selling tokens pre-product development.
    • Large presale investors often engage in short-term token flipping after the ICO.
    • Average returns 9 months after ICOs are positive, largely due to Ethereum's price appreciation.

    Conclusions:

    • ICO investors exhibit diverse strategies, including short-term speculation.
    • The lack of traditional investor protections in ICOs poses significant risks.
    • Positive average returns are heavily influenced by broader cryptocurrency market performance, particularly Ethereum's value.