EconPapers    
Economics at your fingertips  
 

Efficient Markets, Value Neutrality and Symmetric Maximum Entropy Principle

Yinghao Luo ()

MPRA Paper from University Library of Munich, Germany

Abstract: We study the relationship between efficient markets, value neutrality and symmetric maximum entropy principle. We find that the efficient market is in the state of maximum information entropy, which means that market prices fluctuate randomly, that value neutrality is in the state of maximum value entropy, and that information symmetry can lead markets to reach efficient outcomes, while the symmetry of resource allocation is bound to lead to value neutrality, both of which mean they are in a symmetric maximum entropy state.

Keywords: efficient markets; value neutrality; maximum entropy,information symmetry,symmetry of resource allocation (search for similar items in EconPapers)
JEL-codes: D2 D3 D8 E4 F3 G1 (search for similar items in EconPapers)
Date: 2024-05-21
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/121052/1/MPRA_paper_121052.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:121052

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2025-03-22
Handle: RePEc:pra:mprapa:121052