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So markets can only be (perfectly) efficient or competitive, not both at the same time. Largely theoretical but it tracks common sense!
by Dibby053 3mo ago
So markets can only be (perfectly) efficient or competitive, not both at the same time. Largely theoretical but it tracks common sense!
- ffsm8 3mo agoThe title on this HN submission is just wrong. Click on the link and find out.
- abejfehr 3mo agoisn't that what they're saying with "not both at the same time"? the papers both have opposite signs, one has != and the other has =
- ffsm8 3mo agoWithout the braces around the perfectly I would have understood it... yeah, I think I was misinterpreting what he meant to say
- seizethecheese 3mo agoThe title is wrong but you’re also wrong. Read the abstract of the paper. Here’s the relevant section: > Combined with Maymin (2011), who proved that market efficiency requires P = NP, this yields a fundamental impossibility: markets can be informationally efficient or competitive, but not both.