Tuesday, June 14, 2011

Market Inefficiencies

Are they caused by RASHional behavior?

1 comment:

  1. Sorry for the lack of posts lately! I've been incredibly busy studying for my exams and working on my second-year paper.

    Behavioral economists believe people's irrational behavior can affect market prices, while efficient-market economists try to explain prices with models where everyone acts rationally.

    rash (dictionary.com)
    –adjective -er, -est.
    1. acting or tending to act too hastily or without due consideration.
    2. characterized by or showing too great haste or lack of consideration: rash promises.

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