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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 ?
On balance then, evidence from the event studies does not provide much support for the hypothesis that mergers are expected by the financial markets to improve bank performance because of efficiency gains or other factors.
With wide-ranging coverage from leading international researchers, Feed Efficiency will be a valuable resource for producers who wish to understand the complexities, challenges, and opportunities to reduce their cost of production, for students studying the topic and for researchers and professionals working in the beef industry.
Five key ways intelligent efficiency is shaping the market in the commercial and industrial (C&I) sector
The Albanese Organization is known for its pioneering work in environmentally sustainable development, where energy efficiency is a key component.
For if the well off (older workers, developed societies) do not impart an ethic of responsibility for ever improving personal efficiency in younger workers, we have a strong chance of wrecking developed societies in exactly the same ways it has happened before in ancient Egypt, Athens and Rome (I'll spare the guilty the direct comparisons to modern equivalents, but they exist in abundance).
But no matter what the equipment-set up, operators can play a role in increasing the efficiency of their balers.
High-efficiency filters are rated at 60 to 95 percent efficiency, and are sometimes confused with High Efficiency Particle Arrestance (HEPA) filters, which are defined as being 99.
By efficiency, we mean the number of photons emitted versus electrons injected," says Friend.
Similar to mandates on renewable energy or carbon reduction, the most efficient way to implement an energy efficiency mandate is through the competitive market.
Though the industry will be faced with the restraints of proving the effectiveness of some of the new technologies on a commercial scale, overcoming fierce competition, and confronting a weak global economy, fuel efficiency technologies in the commercial aviation market are likely to provide substantial opportunities for potential investors.
In addition, energy efficiency conserves natural resources, helps decrease dependence on overseas oil supplies and contributes to air quality in our communities.
gov/bestpractices or call the Energy Efficiency and Renewable Energy Information Center at 1 877 337-3463.