Behavioral Finance and Investor Governance

  title={Behavioral Finance and Investor Governance},
  author={Lawrence A. Cunningham},
  journal={Capital Markets: Market Efficiency},
  • L. Cunningham
  • Published 23 January 2001
  • Economics
  • Capital Markets: Market Efficiency
The efficient market hypothesis is a special case in finance. It explains only tiny fractions of observed phenomena. Perhaps its major contribution is a formal definition of an ideal market world, to which policy formulations may be directed and against which they can be measured. Indeed, it seems unlikely that the infirmities of market action ever will be so minuscule as to render the EMH more than a special case, though it may explain more in the future than it does now. However things evolve… 
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See Basic v. Levinson, 485 U.S. at 244 (calling the market the defendant's "unpaid agent