Perfect market assumptions

(redirected from Perfect Market Assumption)

Perfect market assumptions

Conditions under which the law of one price holds. The assumptions include frictionless markets, rational investors, and equal access to market prices and information.

Perfect Market Assumptions

The assumptions under which a market or an economy is entirely efficient. Perfect market assumptions include equal access to information by all market participants, completely rational economic actors, and no transaction costs (such as taxes). Perfect market assumptions rarely, if ever, hold true in the real world.