4 ms·
You could argue about the value and market price. In the same way that a liquid betting market, the price is a reasonable estimate for probability, in a any li
by alexchamberlain 15y ago
You could argue about the value and market price.
In the same way that a liquid betting market, the price is a reasonable estimate for probability, in a any liquid market, the price is a reasonable estimate of value.
- andreadallera 15y agoDefine "liquid market".
- arethuza 15y agohttp://en.wikipedia.org/wiki/Market_liquidity http://en.wikipedia.org/wiki/Market_liquidity
- alexchamberlain 15y agoFor example, the market for apples (the fruit) is liquid, but the market for Van Gogh's paintings is not.
- praptak 15y ago> in a any liquid market, the price is a reasonable estimate of value. Is it not a tautology? Is there a definition of value that is substantially different from "the equilibrium price in a perfect market"?
- alexchamberlain 15y agoI'm not sure myself, but is a perfect market the same as a liquid market? Don't you need complete price transparency for that?