adaptive market hypothesis

Adaptive Market Hypothesis

The adaptive market hypothesis argues that we should not judge markets in a dichotomous way as either efficient or inefficient; rather, we should assess how efficient the current market is — that is, the degree of efficiency. In the adaptive market hypothesis, the words rational and irrational are replaced with adaptive and maladaptive.

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Topics: Behavioral Economics,evolutionary theory,Efficient Market Hypothesis,economic theory
Opposite: Efficient Market Hypothesis
Category: Wiki/Economy