The Theory of Markets: Efficient and Inefficient -or- How I Learned to Stop Worrying and Love the Inefficient Market

5 Pages Posted: 29 Jan 2013

See all articles by Zachary Berkstresser, JD, MBA, ARM

Zachary Berkstresser, JD, MBA, ARM

Florida State University - Department of Risk Management/Insurance, Real Estate and Business Law

Date Written: March 29, 2010

Abstract

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

Berkstresser, Zachary, 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

Zachary Berkstresser (Contact Author)

Florida State University - Department of Risk Management/Insurance, Real Estate and Business Law ( email )

College of Business
Tallahassee, FL 32306
United States

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