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Same reason most people in Canada weren't installing geothermal until the federal government started subsidizing them: Inertia. Despite what they may teach you
by 3pt14159 9y ago
Same reason most people in Canada weren't installing geothermal until the federal government started subsidizing them: Inertia.
Despite what they may teach you in Econ 101, the efficient market hypothesis isn't an actually useful way of looking at human behaviour. It might work for modelling some of the actions of Goldman Sachs, but actual people are squishy and irrational.
- icebraining 9y agoThat's a misrepresentation of the efficient market hypothesis. It does not rely on the assumption that humans are rational.
- vonmoltke 9y agoNo, but it does assume the irrationality maps to a random distribution.
- icebraining 9y agoHow could it not?
- 3pt14159 9y agoCultural prejudice?
- icebraining 9y agoI don't think that prevents a random distribution, only some kinds of them. But I'm not expert in statistics, let alone the EMH.