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The degree and speed with which a market accurately incorporates information into prices.

Market Efficiency

The extent to which the price of an asset reflects all information available. Economists disagree on how efficient markets are. Followers of the efficient markets theory hold that the market efficiently deals with all information on a given security and reflects it in the price immediately, and that technical analysis, fundamental analysis, and/or any speculative investing based on those methods are useless. On the other hand, the primary observation of behavioral economics holds that investors (and people in general) make decisions on imprecise impressions and beliefs, rather than rational analysis, rendering markets somewhat inefficient to the extent that they are affected by people.


the relationship between the quantities of factor inputs (labour, materials, etc.) used by a firm and the quantity of output which it is able to produce using these inputs. Where a firm is able to produce the same output using fewer inputs or produce more output using the same quantity of inputs then it has improved its efficiency See PRODUCTIVITY.


the relationship between scarce FACTOR INPUTS and OUTPUTS of goods and services. This relationship can be measured in physical terms (TECHNOLOGICAL EFFICIENCY) or cost terms (ECONOMIC EFFICIENCY). The concept of efficiency is used as a criterion in judging how well MARKETS have allocated resources. See MARKET PERFORMANCE, RESOURCE ALLOCATION, ECONOMIZE.
References in periodicals archive ?
Since the magnitude of the tax shields created by increased leveraged are comparable to LBOs (especially since the 1986 Tax Reform Act), a comparison of the wealth effects of LBOs versus LRs provides insight into the question of whether private ownership is necessary for obtaining the effeciency increases which contribute to the wealth gains in such transactions.
Improvements in professionalism, effeciency, and cost containment far exceed the increased cost of operations compared to off-site physician advisor services.
A convertible ruble would initiate a meaningful incentive toward market effeciency.
5) The term effeciency is used throughout the article and refers to Pareto efficient allocations.
Research and development not only supports abatement, but also helps increases the effeciency of regulation and monitoring.
The Ethernet network is also increasing the effeciency of communications among Systems Integration staffers.
Market prospects of Cogeneration of heat and power with growing demand for high effeciency and low emission technologies
Tenders are invited for Supply of half mask double rever and high effeciency particulate filters, High Efficiency Particulate Filters (P100), Full Mask Double Revertseal Silicon Respirator With P3 Filter Cartridges.
Changes of dry matter, nitrogen content and nitrogen effeciency in oilseed rapein relation to nitrogen nutrotion.