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You are describing an unfree market. By definition, the EMH applies to a free market where people choose where to put their money. The EMH says nothing about e
by lupire 4y ago
You are describing an unfree market. By definition, the EMH applies to a free market where people choose where to put their money.
The EMH says nothing about efficiency of producing value, only about price discovery.
- dragonwriter 4y ago> By definition, the EMH applies to a free market where people choose where to put their money. “The EMH only applies to an idealized analytical fiction and is not applicable to the real world” would also be a problem with the EMH.
- jongjong 4y agoTotally. It is a valid critique. Suggesting that it's valuable in a hypothetical environment is similar to the "not true communism" defense used by communists to explain past failures.