Complex sentence: In economics, a sunspot equilibrium is an economic equilibrium where the market outcome or allocation of resources depends on an'extrinsic' random variable, i.e. on some random influence that matters only because people think it matters.
Split into simpler sentences: In economics, a sunspot equilibrium is an economic equilibrium where the market outcome or allocation of resources varies in a way unrelated to economic fundamentals. In other words, the outcome depends on an'extrinsic' random variable, i.e. on some random influence that matters only because people think it matters.