Why Financial Markets Will Remain Marginally Inefficient
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.
KeywordsFinancial Market Neoclassical Economic Price Signal Negative Entropy Efficient Market Hypothesis
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- 3.Y.-C. Zhang, Wonderfully Inefficient Economy, to be published.Google Scholar