Informational Efficiency in Speculative Markets: A Theoretical Investigation
The purpose of this work is to provide a critical presentation and some extensions of two perspectives of informational efficiency: On the one hand the neoclassical perspective or -arithmomorphic approach- explains efficiency in terms of a concept mainly based on an explicit economic theory. On the other hand, in the Austrian perspective or -causal genetic approach- attention is drawn to the entrepreneurial element of human decision making related to an arbitrage theory of profit which is not traced back to anonymous market forces but rather to incessant discovery of information guided by entrepreneurial alertness."
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The Concept of Allocational Efficiency and Informa
Efficiency in Market
An EfficiencyPreference Function
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A-system according allocational efficiency analysis arbitrage argument arithmomorphic approach assessment assumed assumption Austrian Austrian School behaviour bounded rationality ciency classical competitive concept considered contracts coordinative power decisions defined efficient market performance empirical entrepreneur entrepreneurial activity equilibrium example existence expected return expected value explain fact fair game FAMA FAMA's function future relevant information futures markets futures prices futures trading G.L.S. SHACKLE GEORGESCU-ROEGEN graph HAYEK hedgers hedging hypothesis individual information processing informational efficiency interpretation kind KIRZNER knowledge LEIBENSTEIN mainly managerial managers market efficiency market model market processes market system martingale maximization means microeconomic monopolistic monopoly neoclassical notion optimal PARETO-efficiency PARETO-model particular perfect position possible price changes probability problem production property of prices property rights random walk rational reasoning result risk aversion risk premium sense set of information situation speculative trading spot prices STREIT T-costs theoretical tion token transaction costs utility variable variance X-efficiency