Why Financial Markets Will Remain Marginally Inefficient

  • Yi-Cheng Zhang


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.


Financial Market Neoclassical Economic Price Signal Negative Entropy Efficient Market Hypothesis 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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  1. 1.
    Y.-C. Zhang, Toward a theory of marginally efficient markets. Physica A269 (1999) 30–44.CrossRefGoogle Scholar
  2. 2.
    D. Challet, M. Marsili, and Y.-C. Zhang, Modelling market mechanism, Physica A276 (2000) 284–298.MathSciNetGoogle Scholar
  3. 3.
    Y.-C. Zhang, Wonderfully Inefficient Economy, to be published.Google Scholar

Copyright information

© Springer Japan 2002

Authors and Affiliations

  • Yi-Cheng Zhang
    • 1
  1. 1.Institut de Physique ThéoriqueUniversité de Fribourg PérollesFribourgSwitzerland

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