The best simple illustration of the limits of efficient markets is poor queuing. Despite near perfect info (lengths, processing times) people don’t queue rationally
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Not an accurate comparison. There's no easy way for an astute observer to short an irrational queue (no pun intended) enough to change its behaviour. EMH requires exploitability.
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Yes (and you make a small profit) but not enough to influence/punish others, so the overall system is not rational. You have information but you can't make a *large enough* bet. Markets weight bets by volume (risk), not equally per person.
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