Efficient Capital Markets: A Review of Theory and Empirical Work

Eugene Fama's review of theory and evidence on efficient capital markets. Both papers cite it as the strongest precedent for teleological saturation (C2): in an efficient market, the purposeful activity of many traders sets prices that change nearly unpredictably. Purpose, aggregated and in competition, looks like noise.

Cited in

both papers (Flagship: Three conjectures; Companion §10)

Used for

C2C2

Strand

The agent economy · Markets & economic theory

Cite

@article{fama1970efficient,
  title = {Efficient Capital Markets: A Review of Theory and Empirical Work},
  author = {Eugene F. Fama},
  year = {1970},
  journal = {The Journal of Finance},
  doi = {10.2307/2325486},
}