Notes

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.


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