[lbo-talk] More on markets ...

[Michael Perelman]

Where people have good prior information about such matters markets can
register that knowledge rapidly.  Does that mean that markets in general
are efficient?

On Sun, Aug 10, 2003 at 10:03:29AM -0700, Jordan Hayes wrote:
> [ Challenger disaster cause determined by the market within hours
> ... --JMH ]
> 
> http://slate.msn.com/id/2086811/
> 
> "But in an article in the forthcoming September Journal of Corporate
> Finance-the abstract can be seen here-Michael T. Maloney of Clemson
> University and J. Harold Mulherin of Claremont McKenna College argue
> that the market figured out which company was responsible within minutes
> of the disaster, and calculated how much the disaster would cost the
> culprit in lost profits within hours. It's either spooky coincidence or
> the ultimate proof of the efficiency of markets. "
> 
> [ ... ]
> 
> /jordan
> 
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu