this post was submitted on 26 May 2024
323 points (93.3% liked)

Comic Strips

12990 readers
2901 users here now

Comic Strips is a community for those who love comic stories.

The rules are simple:

Web of links

founded 2 years ago
MODERATORS
 
you are viewing a single comment's thread
view the rest of the comments
[–] MacNCheezus@lemmy.today 3 points 7 months ago

That’s a good point, and kinda reminds me of the Efficient Market Paradox, which basically says an efficient market is impossible since there would be no profit to be made, and hence, no point in participating. But if people drop out because of that, inefficiencies will invariably pop again, thus presenting an opportunity for those seeking to profit, which of course only ends up restoring the efficiency.

So in essence, the market is always just teetering on the edge of efficiency, never fully getting there yet never straying too far either. Perhaps there’s a corollary here (or a similar paradox) that explains why the assumption of rationality, as ridiculous as it seems at face value, is in fact also valid and reasonable.