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Efficient market theory in no way claims that all companies must always act rationally. And even more so, you can attempt to make a rational decision, and stil
by zaroth 7y ago
Efficient market theory in no way claims that all companies must always act rationally.
And even more so, you can attempt to make a rational decision, and still be wrong.
It’s also often said about the market, that it can remain irrational longer than you can remain solvent.
- QuesnayJr 7y agoThe parent comment doesn't just say "efficient market". It also explicitly mentions "Homo economicus" and "rational company". A rational company makes rational decisions, pretty much by definition. The saying that the market can remain irrational longer than you can remain solvent directly contradicts the efficient market hypothesis.