In a financial market where all agents are rational, no trading would ever happen because either you don't know something that seller knows while buying or buyer doesn't know what you know So the fact that trading happens is a proof of irrationality in financial markets.
-
-
I'm with you on that when it comes to practice. I'm talking about perfectly rational agents. You may find this fascinating: Aumann's agreement theorem. This writeup by
@robinhanson is great: http://www.overcomingbias.com/2006/12/agreeing_to_agr.html … - 2 more replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.