The principle of reflexivity was perhaps first enunciated by the sociologists William I. Thomas and Dorothy Swaine Thomas, in their 1928 book The child in America: "If men define situations as real, they are real in their consequences". The theory was later termed the "Thomas theorem".

What is theory of reflexivity?

Reflexivity theory states that investors don't base their decisions on reality, but rather on their perceptions of reality instead. The actions that result from these perceptions have an impact on reality, or fundamentals, which then affects investors' perceptions and thus prices.

Who invented reflexivity?

A third sense of the term is in the context of "reflexive sociology." The term was coined by Parsons's student Alvin Gouldner, who called for a sociological examination of the discipline itself as part of a liberatory "radical sociology." The theorist most closely associated with reflexive sociology in this sense is ...