Posted: Nov 17, 2013 1:19 am
GT2211 wrote:-I don't agree necessarily that the findings of behavioral economists have been viewed with suspicion by the mainstream. That Kahneman won a Nobel is I think evidence of this.
Joseph Stiglitz won a Riksbankspris too. That doesn't mean the field as a whole has taken what got him the prize, namely his work on imperfect information to heart. Nor has it taken to heart any other deviant things he's said about things like globalization, including the Bretton Woods institutions. That's why he quit his office at the World Bank.
The Weak form of the EMH merely asserts that asset prices fluctuate in a random way.
"Random" needs clarification. Are you talking about Gaussian fluctuations in price? And what happened to the part about the prices reflecting all available public information? The weak form sounds like saying that stock prices are somehow stochastic, which is not especially controversial and not, in the technical sense, necessarily a sign that markets are efficient.