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Only in a market with perfect information. With imperfect information, the market rate is an estimate of the expected or typical rate for a similar good. Becaus
by jltsiren 6mo ago
Only in a market with perfect information. With imperfect information, the market rate is an estimate of the expected or typical rate for a similar good. Because everyone has access to a different subset of the information, everyone's estimate is different, and companies often end up paying above or below the consensus rate.
- SR2Z 6mo agoYes, this is how markets work. You don't need perfect information to have a market. The price of risk is factored in.