Inefficient market

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Inefficient Market

A market where prices do not always reflect available information as accurately as possible. Inefficient markets may result from a lag in information transferring to one place to another, deliberate withholding of information by an insider, or other reasons. Inefficient markets give rise to arbitrage opportunities. Most analysts believe that no market is perfectly efficient and that some inefficiency is inevitable. See also: Efficient Markets Hypothesis.

Inefficient market.

In an inefficient market, investors may not have enough information about the securities in that market to make informed decisions about what to buy or the price to pay.

Markets in emerging nations may be inefficient, since securities laws may not require issuing companies to disclose relevant information. In addition, few analysts follow the securities being traded there.

Similarly, there can be inefficient markets for stocks in new companies, particularly for new companies in new industries that aren't widely analyzed.

An inefficient market is the opposite of an efficient one, where enormous amounts of information are available for investors who choose to use it.

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Here Ei showed the inefficiency score, ss was for unknown factors and Zi was for socioeconomic as well as farm-specific variables.
The equation for measuring allocative inefficiency for the macro economy is [([DELTA]P[DELTA]Q/2)(% of national income produced by industries creating the misallocation)].
It follows that cost inefficiency (CIE) is described by bc/Oc and allocative inefficiency (AEI) is ab/Oa.
We dub the latter the "bottom-up" inefficiency triangle to highlight that it results from actual bottom-up market dynamics--in particular, from the random allocation of demand-limited jobs to willing workers.
The authors use data from the Statistical Yearbook [United Nations, various], International Financial Statistics [International Monetary Fund (JMF), various], and the Demographic Yearbook [United Nations, various] to test for dynamic inefficiency in China.
While the first method has been criticized as including too much in the estimate of firm inefficiency, the second has been criticized for the strong assumptions needed in separating the stochastic from the systematic inefficiency components in the error.
Because estimation of a translog cost function averaged out the dispersion among institutions, it understated inefficiency.
The area where just about the right attitude toward government prevails is military affairs: Everybody who has spent time around the military knows that bureaucratic inefficiency is a constantly looming danger, but nobody (except truly purist libertarians and disarmers) argues that there's any choice but to use a government agency to defend the country.
Keywords Cost inefficiency * Stochastic cost frontier * Government ownership * Universities
The relationship between production technical inefficiency (loss of output due to technical inefficiency) and profit technical inefficiency (profit loss due to technical inefficiency) is derived for a flexible production function.
The point is not that government is efficient--it is not--but that the cure for its inefficiency does not lie in hyped-up nostrums from the business world.