>
>
> Because markets would be efficient if all traders in the market
> internalized/operationalized the prescriptions of the emh. The
> "performativity of markets", self-fulfilling belief dynamics and all
> that. Those interested in more might want to have a look at Donald
> MacKenzie's work.
>
> <http://www.sps.ed.ac.uk/staff/sociology/mackenzie_donald>
>
> The thorny problem of "the" traverse does not seem to be on EF's radar
> screen in the interview.
>
> Ian
I thought it was the opposite - that EMH's truth rested on there being lots of (necessarily non-EMH-subscribing, for certain values of the EMH) active traders looking to gain the smallest advantage. If everyone assumed prices were correct, there would be a lot of arbitrage opportunities and EMH would be false.