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Amusingly, all such theories tend to be based in the assumption that the humans in the market will be perfectly informed and perfectly rational, but there's an
by ubernostrum 10y ago
Amusingly, all such theories tend to be based in the assumption that the humans in the market will be perfectly informed and perfectly rational, but there's an article on the front page about the irrational biases people have when participating in markets...
- dmichulke 10y agoSorry to respond so late but I just saw this now. I hear this argument often but in a free market the best (and not the perfectly informed) will perform best. Best here means the one making the best out of the given information which may still be very little. Likewise, rationality helps but it's not at all a prerequisite. I wonder where people pick this up, I sincerely heard it often but I fail to see why one needs rational agents or perfect information. I would appreciate an elaboration of your thoughts (that is, if you want to continue the discussion).