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Home > QFINANCE Dictionary > Definition of waterbed effect

Definition of

waterbed effect

Finance

linked fall and rise the effect of a reduction in one area creating an increase in another area. For example, if the price for one service provided by a company is fixed at a particular level, the price for another of its services rises.

Definitions of ’waterbed effect’ and meaning of ’waterbed effect’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’waterbed effect’ and other financial terms with our online QFINANCE Financial Dictionary.

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