Markets are efficient if and only if P=NP (2010)

Re:Markets are efficient if and only if P=NP (2010) by bo1024 on Wednesday October 21, 2020 @02:18AM (#24845218)

> our perception of value itself can be subjective and influenced by many things including FOMO, safety in numbers perceptions, risk aversion (usually), etc etc.

The intuition behind the efficient market hypothesis is that each of these deviations from "homo economicus", if it occurs in a market, is an opportunity for someone else to make money. EMH says that opportunity won't be wasted, at least for very long.

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Re:Markets are efficient if and only if P=NP (2010) by kohlerm on Wednesday October 21, 2020 @07:04AM (#24846590)

That still means efficiency is lost. E.g. the market might fluctuate between non-optimal state. And then again in case monopolies build up, then there is no easy way to get out of a suboptimal state, because there are no real opportunities for someone else.

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