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by zaroth 2493 days ago
Efficient market theory in no way claims that all companies must always act rationally.

And even more so, you can attempt to make a rational decision, and still be wrong.

It’s also often said about the market, that it can remain irrational longer than you can remain solvent.

1 comments

The parent comment doesn't just say "efficient market". It also explicitly mentions "Homo economicus" and "rational company". A rational company makes rational decisions, pretty much by definition.

The saying that the market can remain irrational longer than you can remain solvent directly contradicts the efficient market hypothesis.