|
Background Note
| HBS Case Collection
|
2007
(Revised from original 2005 version)
Market Efficiency
by
Joshua D. Coval, Erik Stafford, Rodrigo Osmo, John Jernigan, Zachary Page and Paul Passoni
|
Abstract
Covers how prices react to information, the incentives for bringing information into prices, and the paradox of market efficiency in equilibrium--for investors to work hard keeping markets efficient, they must always be somewhat inefficient at the margin. Uses separate financial market simulation software.
Citation:
Coval, Joshua D., Erik Stafford, Rodrigo Osmo, John Jernigan, Zachary Page, and Paul Passoni. "Market Efficiency." Harvard Business School Background Note 205-081, October 2007. (Revised from original June 2005 version.)