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 ?
However, the arbitrage trading will lead to improved price efficiency and probably less volatility.
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.
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].
This type of auction efficiency will be referred to in this paper as the price efficiency.
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.
To understand overall competitive impact, however, such price efficiency gains must be offset against any innovation losses.
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.
The involvement of government, private and individual agencies, middlemen, co-operative bodies, etc, has over the years tried to interfere in agricultural production in order to achieve price efficiency.
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.