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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 ?
A certain amount of inverted snobbery has been directed against the newer brewery chains whose attention to standardised effeciency and appearance is as welcome as your average anthrax spore in more traditional circles.
The spirit and mind work with amazing effeciency under these inspiring conditions, and it was thus that I sensed a tiny movement far off in the thornscrub to my left.
Technical specifications for color rendering index and color temperature were given, as determining factors in effeciency.
Mathematically, PI = n x Us x Cp x Sf, where n is the effeciency of all inputs, Us is the system utilization, Cp is the capability and Sf is a speed factor.
With the rod in place, use a carpenter's level to make sure the rod is perfectly vertical; Breezy must be vertical to operate at maximum effeciency.
Generally, referred to as productivity tool software, PIMs can improve work effeciency.
Improvements in professionalism, effeciency, and cost containment far exceed the increased cost of operations compared to off-site physician advisor services.
Ned Hill effeciency and savings in labor and handling costs.
A convertible ruble would initiate a meaningful incentive toward market effeciency.