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But markets are not efficient ...
by wei_jok 8y ago
But markets are not efficient ...
- fouc 8y agoProof that P does not = NP after all.
- coliveira 8y agoNow this will degenerate into a fight between economists and computer scientists...
- deleted 8y ago[deleted]
- mdturnerphys 8y ago"Since P probably does not equal NP, markets are probably not efficient."
- sova 8y agoweak-form efficiency in markets means something special.
- Dylan16807 8y agoNot really. It means that the market incorporates all past data. This paper is entertaining but it depends on the assumption that computing power grows exponentially forever and will eventually be able to solve all P problems at negligible cost. That assumption is clearly not justified. And the belief that any market perfectly incorporates data, not a single point off in any stock, is basically a strawman anyway.
- sova 8y agoI don't know! I'm wondering! Because weak-form efficient means something different than strong efficiency, which is what you say when the market perfectly incorporates all data. Just out of curiosity, if the data doesn't go into the market, where does it go? Strong econ minds believe that prices do incorporate all the data necessary for valuation
- Dylan16807 8y agoSometimes data gets lost. People are making the decisions, and people are sloppy and lossy. Weak and strong are just about which data is incorporated. Neither one addresses the fact that no entity interacting with a market is infallible.
- nyolfen 8y agois it really so much to ask to read the one paragraph abstract before making a comment like this?