Trust, news and the efficient markets hypothesis

I presented this paper today at the conference of the Cass Behavioural Finance Working Group.

In summary, it replaces the concept of "news" or "information" in the Efficient Markets Hypothesis with a model of beliefs, reflecting the idea that nobody in a market has objective, indisputable knowledge about anything, only beliefs of different levels of confidence.

Slides here; will tell you more later.

Comments

Popular posts from this blog

What people want, cognitive goods, models of persuasion and why we avoid important information: the cognitive economics session at the AEA conference

Introducing System 3: How we use our imagination to make choices

Discussion 2 of 3: No spooky action at a distance - a theory of reward