Chapter 8: Implications for Everyday Systems

Section 8: Financial Systems

Efficient markets

In its strong form the so-called Efficient Market Hypothesis states that prices immediately adjust to reflect all possible information, so that knowing a particular piece of information can never be used to make a profit. It is now widely recognized—even in academia—that this hypothesis is a fairly poor representation of reality.

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From Stephen Wolfram: A New Kind of Science [citation]