Re:Markets are efficient if and only if P=NP (2010)
by LolWolf on Wednesday October 21, 2020 @12:57PM
(#24849705)
Sorry, I'm afraid I don't understand your position at all.
My point is that, like EMH, none of these are pretending to be the "be all end all solution to all models" and it's obviously silly to pretend otherwise? So it seems you're agreeing with me?
Re:Markets are efficient if and only if P=NP (2010)
by AndrewKemendo on Wednesday October 21, 2020 @02:50PM
(#24850829)
Maybe you and I agree that EMH shouldn't be considered god's truth, but macroeconomists who inform policymakers and asset pricing theory sure as hell do. Trust the market, market clearing etc... all come out of the philosophy.
I think that's the whole crux of the paper - the people informing how we structure our economy shouldn't consider EMH doctrine.
Re:Markets are efficient if and only if P=NP (2010)
by winston_smith on Wednesday October 21, 2020 @05:35PM
(#24852481)
That only works if the alternatives to EMH are better heuristics than it is.
I think that's a perfectly cromulent position actually. It's a great example where the theory doesn't help when you're working with real non-homo economicus agents, and I would argue hurts if you assume that people behave (or should) behave according to those concepts.
>This is "rational" as in "rational agent" (utility-maximizing, or an agent that makes at least Pareto-optimal choices, or who plays to Nash or correlated equilibria)
...even worse. Go find me one of these perfect information people. I suppose you could collapse the stated preference and revealed preference superposition into observed preference to solve the equation.