Self-fulfilling prophecy in the context of "Confidence"

A doomsday cult is a cult that believes in apocalypticism and millenarianism, including both those that predict disaster and those that attempt to destroy the entire universe. Sociologist John Lofland coined the term in his 1966 study Doomsday Cult: A Study of Conversion, Proselytization, and Maintenance of Faith, about a group of members belonging to the Unification Church of the United States. In 1958, Leon Festinger published a study of a group with cataclysmic predictions: When Prophecy Fails: A Social and Psychological Study of a Modern Group that Predicted the Destruction of the World.

The phenomenon of continued commitment to the "doomsday cult", even after the prophecy fails, has been attributed to the coping method of dissonance reduction, a form of rationalization. Members often dedicate themselves with renewed vigor to the group's cause after a failed prophecy, rationalizing with explanations such as a belief that their actions forestalled the disaster or a continued belief in the leader when the date for disaster is postponed. Some researchers believe that the use of the term by the government and the news media can lead to a self-fulfilling prophecy, in which actions by authorities reinforces the apocalyptic beliefs of the group, which in turn can inspire further controversial actions. Group leaders have themselves objected to comparisons between one group and another, and parallels have been drawn between the concept of a self-fulfilling prophecy and the theory of a deviancy amplification spiral.

A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may fail in the near future. In other words, it is when, in a fractional-reserve banking system (where banks normally only keep a small proportion of their assets as cash), numerous customers withdraw cash from deposit accounts with a financial institution at the same time because they believe that the financial institution is, or might become, insolvent. When they transfer funds to another institution, it may be characterized as a capital flight. As a bank run progresses, it may become a self-fulfilling prophecy: as more people withdraw cash, the likelihood of default increases, triggering further withdrawals. This can destabilize the bank to the point where it runs out of cash and thus faces sudden bankruptcy. To combat a bank run, a bank may acquire more cash from other banks or from the central bank, or limit the amount of cash customers may withdraw, either by imposing a hard limit or by scheduling quick deliveries of cash, encouraging high-return term deposits to reduce on-demand withdrawals or suspending withdrawals altogether.

A banking panic or bank panic is a financial crisis that occurs when many banks suffer runs at the same time, as people suddenly try to convert their threatened deposits into cash or try to get out of their domestic banking system altogether. A systemic banking crisis is one where all or almost all of the banking capital in a country is wiped out. The resulting chain of bankruptcies can cause a long economic recession as domestic businesses and consumers are starved of capital as the domestic banking system shuts down. According to former U.S. Federal Reserve chairman Ben Bernanke, the Great Depression was caused by the failure of the Federal Reserve System to prevent deflation, and much of the economic damage was caused directly by bank runs. The cost of cleaning up a systemic banking crisis can be huge, with fiscal costs averaging 13% of GDP and economic output losses averaging 20% of GDP for important crises from 1970 to 2007.

The Pygmalion effect is a psychological phenomenon in which high expectations lead to improved performance in a given area. It is named after the Greek myth of Pygmalion, the sculptor who fell so much in love with the perfectly beautiful statue he created that the statue came to life. The psychologists Robert Rosenthal and Lenore Jacobson present a view, that has been called into question as a result of later research findings, in their book Pygmalion in the Classroom; borrowing something of the myth by advancing the idea that teachers' expectations of their students affect the students' performance. Rosenthal and Jacobson held that high expectations lead to better performance and low expectations lead to worse performance, both effects being examples of self-fulfilling prophecy.

According to the Pygmalion effect, the targets of the expectations internalize their positive labels, and those with positive labels succeed accordingly; a similar process works in the opposite direction in the case of low expectations. The idea behind the Pygmalion effect is that increasing the leader's expectation of the follower's performance will result in better follower performance.

Labeling theory posits that self-identity and the behavior of individuals may be determined or influenced by the terms used to describe or classify them. It is associated with the concepts of self-fulfilling prophecy and stereotyping. Labeling theory holds that deviance is not inherent in an act, but instead focuses on the tendency of majorities to negatively label minorities or those seen as deviant from standard cultural norms. The theory was prominent during the 1960s and 1970s, and some modified versions of the theory have developed and are still currently popular. Stigma is defined as a powerfully negative label that changes a person's self-concept and social identity.

Labeling theory is closely related to social-construction and symbolic-interaction analysis. Labeling theory was developed by sociologists during the 1960s. Howard Saul Becker's book Outsiders was extremely influential in the development of this theory and its rise to popularity.

A self-defeating prophecy (self-destroying or self-denying in some sources) is the complementary opposite of a self-fulfilling prophecy; a prediction that prevents what it predicts from happening. This is also known as the prophet's dilemma.

A self-defeating prophecy can be the result of rebellion to the prediction. If the audience of a prediction has an interest in seeing it falsified, and its fulfillment depends on their actions or inaction, their actions upon hearing it will make the prediction less plausible. If a prediction is made with this outcome specifically in mind, it is commonly referred to as reverse psychology or warning. Also, when working to make a premonition come true, one can inadvertently change the circumstances so much that the prophecy cannot come true.

Robert King Merton (born Meyer Robert Schkolnick; July 4, 1910 – February 23, 2003) was an American sociologist who is considered a founding father of modern sociology, and a major contributor to the subfield of criminology. He served as the 47th president of the American Sociological Association. He spent most of his career teaching at Columbia University, where he attained the rank of University Professor. In 1994 he was awarded the National Medal of Science for his contributions to the field and for having founded the sociology of science.

Merton's contribution to sociology falls into three areas: (1) sociology of science; (2) sociology of crime and deviance; (3) sociological theory. He popularized notable concepts, such as "unintended consequences", the "reference group", and "role strain", but is perhaps best known for the terms "role model" and "self-fulfilling prophecy". The concept of self-fulfilling prophecy, which is a central element in modern sociological, political, and economic theory, is one type of process through which a belief or expectation affects the outcome of a situation or the way a person or group will behave. More specifically, as Merton defined, "the self-fulfilling prophecy is, in the beginning, a false definition of the situation evoking a new behavior, which makes the originally false conception come true".