Use ratchet effect in a sentence
You need to understand how a ratchet effect may change the market and quickly adapt to it as best you can.
Even though John received a 4% increase in salary this year, it was not quite as good as the 8% he got a few years ago. This ratchet effect caused him to not enjoy the raise as much as before.
The ratchet effect of reducing the size of a large soda, is people now feel like they are not getting their moneys worth of the product.