Martingale pricing, the Markov property, and geometric Brownian motion set up the constant-parameter assumption behind classical market efficiency. Fama's three-form taxonomy, the joint hypothesis problem, and Grossman-Stiglitz's limits on informational efficiency show why that assumption fails — and why Lo's Adaptive Markets Hypothesis replaces an equilibrium with an ecology.
latest · published 2026-09-06
A three-part investigation into why market efficiency isn't a fixed state, but a population-dynamics outcome.
active · 1 of 3 parts published