Abstract
I summarize the recent work on market (in)efficiency, highlighting key elements why financial markets will never be made efficient. My approach is not by adding more empirical evidence, but giving plausible reasons as to where inefficiency arises and why it’s not rational to arbitrage it away.
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References
Y.-C. Zhang, Toward a theory of marginally efficient markets. Physica A269 (1999) 30–44.
D. Challet, M. Marsili, and Y.-C. Zhang, Modelling market mechanism, Physica A276 (2000) 284–298.
Y.-C. Zhang, Wonderfully Inefficient Economy, to be published.
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© 2002 Springer Japan
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Zhang, YC. (2002). Why Financial Markets Will Remain Marginally Inefficient. In: Takayasu, H. (eds) Empirical Science of Financial Fluctuations. Springer, Tokyo. https://doi.org/10.1007/978-4-431-66993-7_31
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DOI: https://doi.org/10.1007/978-4-431-66993-7_31
Publisher Name: Springer, Tokyo
Print ISBN: 978-4-431-66995-1
Online ISBN: 978-4-431-66993-7
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