Labeling theory is a way of thinking about how people view themselves and each other. It says that when people label someone as something (like "criminal" or "shy" or "smart"), it creates a self-fulfilling prophecy. In other words, when someone is labeled with a certain name or label, they start to behave in a way that matches that name or label. For example, if someone labels a child as "shy", the child might start to act more shy around other people because they think it's expected of them.