3 ms·

so if a new ic car is built and sold the price wouldnt change? if a new ev is built and sold the price wouldnt change? if a new oil reserve is found the price w

• simonh 4y ago
  Of course, it’s absurd. That’s what I was pointing out. Prices do change, so obviously markets are not perfectly efficient, and in fact can’t be including for the reasons you give.
  • sixstringtheory 4y ago
    You can ignore everything else parent said and focus on this: > efficient markets != perfect foresight “Efficient market” refers to the speed and proportion of the reaction to new information as it is discovered.
    • simonh 4y ago
      That's a perfectly fine definition, but the post I was relying to was not taking that into account. It was suggesting that in a perfect market the possibility that maybe a certain course of action might be followed, that this must be priced in. If you follow that logic, then in perfect markets prices should never change. The problem is it's flawed logic because uncertainties cannot be priced in.