Rethinking the Efficient Markets Hypothesis

Le, Nhat

doi:10.2139/ssrn.1999543

Abstract

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Rethinking the Efficient Markets Hypothesis

Nhat Le

affiliation not provided to SSRN

February 5, 2012

Abstract:
We develop an adaptive learning game to rethink the efficient markets hypothesis using the stochastically stable state of this game to characterize a richer set of market states than those suggested by the hypothesis. In particular, the model predicts that the economy may follow a path leading to bubbles.

Number of Pages in PDF File: 34

Keywords: efficient markets hypothesis, limits to arbitrage, adaptive learning

JEL Classification: C22, C73, G12, G14, G17

working papers series

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Date posted: February 8, 2012

Suggested Citation

Le, Nhat, Rethinking the Efficient Markets Hypothesis (February 5, 2012). Available at SSRN: http://ssrn.com/abstract=1999543 or http://dx.doi.org/10.2139/ssrn.1999543

Contact Information

Nhat Le (Contact Author)

affiliation not provided to SSRN ( email )