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Are stock traders just random?
Nature reports this new article on the stock market, which purports to show that trader behavior might simply be random. I haven't read the whole piece yet, but I worry when it characterizes the mainstream view as suggesting that all traders are fully rational. I don't consider myself an advocate of the efficient markets hypothesis, but the notion is more modest than that. Still, anything published in Nature is newsworthy.
Posted by Tyler Cowen on September 24, 2003 at 08:01 AM in Economics | Permalink
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» Random stock traders and the ECMH; with a review of Malkiel's Random Walk from ProfessorBainbridge.com
An article in Nature claims: "Stock market traders show signs of zero intelligence." It reports on research by J. Doyne Farmer, of the Santa Fe Institute, which purports to find that "that economic decision-making is so varied and complex that [Read More]
Tracked on Sep 24, 2003 7:55:40 PM
