market efficiency


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Related to market efficiency: Efficient market hypothesis

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 ?
Demonstrating the requisite market efficiency quickly became one of the major hurdles for plaintiffs seeking to bring 10b-5 class actions, and the question of market efficiency took on a significance that would not be immediately obvious from a casual reading of Basic's plurality opinion.
The results indicated that for all types of e-market, there is a significant difference between new and old businesses in regard to market efficiency; and compared to old businesses new businesses expect less market efficiency from e-market.
Some arbitrage pricing relationships jointly test options and stock market efficiency and allow examination of the information exchange between these markets whereas others test options market efficiency alone and allow examination of how pricing has evolved over time.(2) The relationships and empirical tests reported in this article are of the latter type.
Strong Form Market Efficiency: all bets should have expected values equal to (1 - t) times the amount bet.
The GCI is based on an annual survey administered by the World Economic Forum that factors in 12 categories, which, apart from goods market efficiency, also includes institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, labor-market efficiency, financial market development, technological readiness, market size, business sophistication and innovation.
"Our country's Labor Market Efficiency ranking showed the highest improvement in performance in the 12 pillars of competitiveness, from 91 in 2014, to 82 in 2015, or with nine-notch upgrade," Baldoz said.
Among the lowest rankings were in the goods market efficiency pillar at 80th (intensity of local competition, extent of market dominance, effectiveness of anti-monopoly policy); in labor market efficiency at 82nd (flexibility of wage determination, hiring and firing practices), and health and primary education pillar at 86th place.
The system will be used by utilities with the goal of "improving market efficiency" and creating a "stable and reliable power supply" in Japan.
It also recognizes LGUs for implementing and sustaining health policies and programs that promote the well-being, health and safety of the public as well as ensuring that vulnerable sectors have opportunities for better health, instituting education reforms and programs to improve the quality of education and encouraging pro-competitive policies and government interventions to promote market efficiency and consumer welfare.
The bourse enlisting as an emerging market will lead to improving the market efficiency, diversifying leading investors, encouraging veteran entrepreneurs to partake in general assemblies, luring foreign investment, swelling liquidity and making the financial market much more attractive, Al-Osaimi elaborated.
Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency is incomplete.
Under the Philippine Development Plan 2017-2022, the government declared it will craft the NCP in order to improve consumer welfare and market efficiency.