Only used in business, ceteris paribus

All other things being equal

(Eng. ceteris paribus clause) In order to examine in the model the effect of the change of an influencing factor on a variable that depends on several influencing factors in isolation, it is advisable to keep the other influencing factors constant. If, for example, the demand for a consumer good is to be examined depending on its price, it is assumed, for the sake of simplicity, that the real income of consumers and their preferences do not change, the supply of substitute goods also remains constant, among other things. m.

The assumption of the constancy of all other influencing factors is indicated by the abbreviation «c. p. » for lat. ceteris paribus (= other things equal) marked. The premise c. p. naturally restricts the general validity of the statement obtained because the interactions with other influencing factors are assumed to be disregarded.

In economic sociology:

A restriction added to many social science models and legal statements (especially economics), which means that the legal statements should only apply insofar as all factors not contained in the model or statement remain constant. These factors are discussed in the cp.-K. not further described. Therefore, the models cannot be checked empirically, since in the case of contrary observations the statements with reference to possible changes of the c.-p.-K. unspecified factors can be sustained. This use of the c.- p.-K. leads to the immunization of statements and models. The accusation of model Platonism is based on this.



serves the
mental elimination of all influences that are not mentioned in a model
recorded processes. The influencing variables that have not been introduced thus become, as it were
"frozen". This can lead to false conclusions, especially in the case of partial analysis, if the variables included in the consideration
by their variation due to existing dependencies in the non-recorded variables
lead to changes which in turn affect the recorded variables
work back. Therefore, strictly speaking, the ceteris paribus premise is only then
allowed if these repercussions remain small.




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