Rationality Quotes March 2012

Thomas

Here's the new thread for posting quotes, with the usual rules:

Please post all quotes separately, so that they can be voted up/down separately. (If they are strongly related, reply to your own comments. If strongly ordered, then go ahead and post them together.)
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Here's the new thread for posting quotes, with the usual rules:

Please post all quotes separately, so that they can be voted up/down separately. (If they are strongly related, reply to your own comments. If strongly ordered, then go ahead and post them together.)
Do not quote yourself
Do not quote comments/posts on LW/OB
No more than 5 quotes per person per monthly thread, please.

Efficient has a very specific meaning in economics (well, two specific meanings, depending on what kind market you're talking about).

I know of three, although it is a matter of parametrization (weak, strong, semi-strong). What two meanings do you have in mind?

The three you mention are all subtypes of the same efficiency - informational efficiency. Informational efficiency is used in finance and refers to how well a financial market incorporates information into prices. Basically a market is informationally efficient if you can't out-predict without using information it doesn't have. The weak / semi-strong / strong distinction merely indicates how much information it is incorporating into prices: weak means it's incorporating it's own past prices, semi-strong includes all public information, and strong includ... (read more)

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Rationality Quotes March 2012

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Rationality Quotes March 2012

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