Why Financial Markets Will Remain Marginally Inefficient?
Disordered Systems and Neural Networks
2008-12-02 v1 Trading and Market Microstructure
Abstract
I summarize the recent work on market (in)efficiency, highlighting key elements why financial markets will never be made efficient. My approach is not by adding more empirical evidence, but giving plausible reasons as to where inefficiency arises and why it's not rational to arbitrage it away.
Cite
@article{arxiv.cond-mat/0105373,
title = {Why Financial Markets Will Remain Marginally Inefficient?},
author = {Yi-Cheng Zhang},
journal= {arXiv preprint arXiv:cond-mat/0105373},
year = {2008}
}
Comments
5 pages, 1 figure. based on a speech at Tokyo Econophysics Meeting, Nov 14th 2000