5 Pages Posted: 29 Jan 2013
Date Written: March 29, 2010
Market theories permeate the consciousness of those involved in the markets, as with most things everyone has an opinion, and as with most things many people are wrong. The study of whether markets function efficiently or inefficiently is timeless; to say only the people change isn’t even an accurate observation because the pervasiveness of irrationality and inefficiency is one that transcends time. I intend to present the basis for both arguments, and then add my own sauce (if you will).
Keywords: inefficient market hypothesis, securities valuation, behavioral economics
JEL Classification: D49, G12
Suggested Citation: Suggested Citation
Berkstresser, Zachary L., The Theory of Markets: Efficient and Inefficient -or- How I Learned to Stop Worrying and Love the Inefficient Market (March 29, 2010). Available at SSRN: https://ssrn.com/abstract=2208235 or http://dx.doi.org/10.2139/ssrn.2208235