market efficiency

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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.

market efficiency

References in periodicals archive ?
We conjecture that reduced incentives for information acquisition and arbitrage induced by indexing and passive trading are probably the main causes for degradation in price efficiency.
The opportunity to bring transparency, price efficiency and transaction-based benchmarks to interbank lending is very compelling to us and is closely aligned with CBOE's values and core strengths.
Generally, we can say that for all of the required marketing paths, the rate of price efficiency is wonderfully lower than technical efficiency and the total efficiency of marketing has a low level [3].
The new GPUs will balance the need for higher performance, energy efficiency, price efficiency, and faster time-to-market.
Researchers have said that there are also signs of maturity based on increased liquidity and price efficiency, which means all available information is incorporated into prices so they are traded in a relatively transparent manner.
This is based on extensions to the micro-economic concept of Debreu-Farrell's price efficiency measurement.
Treasury had earlier announced that it would initiate the buyback program to ensure a balanced debt redemption profile and to increase the price efficiency of secondary market.
com)-- A rise in competition and high-frequency trading in the British stock market in recent years has done nothing to improve price efficiency, according to a report by brokerage CA Cheuvreux, developed by a team led by Charles-Albert Lehalle, Head of Quantitative Research for CA Cheuvreux, Credit Agricole Group's (CAGR.
Using a matching-firm methodology to address possible endogeneity, the authors find that liquidity decreases significantly, price efficiency deteriorates rapidly, information asymmetries increase, and institutional shareholders and liquidity-motivated traders leave the stock.
Shiller, author of the acclaimed Irrational Exuberance (2002), will address the nascent development of real estate derivatives, including his new real estate hedge fund, as a means of reducing the volatility of the real estate market and promoting price efficiency.
Focusing on our customer's needs we've invented and continue to advance bulk solids material handling products and systems that have a proven track record for accuracy, reliability, price efficiency, and quality.