AGENTS' BEHAVIOR AND EFFICIENT MARKET THEORY
AGENTS' BEHAVIOR AND EFFICIENT MARKET THEORY
Author(s): Rudolf Bryša
Subject(s): Methodology and research technology, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: Efficient market theory; EMT; information; efficient market; knowledge of particular circumstances of time and place; scientific knowledge;
Summary/Abstract: The efficient market theory examines which groups of information are included in the market price. It also provides a hypothesis of efficient market where prices fully reflect all available information. However, the theory does not describe the behaviour of economic agents which leads to the state where the market is efficient. Robert Lucas, with his model based on rational expectations, offers a possible solution.
Book: New Economic Challenges: 2nd International PhD Students Conference. 20. 1. – 21. 1. 2010
- Page Range: 225-230
- Page Count: 6
- Publication Year: 2010
- Language: English
- Content File-PDF