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by SAI_Peregrinus 2338 days ago
The efficient market hypothesis implies that P==NP. There's a LOT of reason to believe it's false.
1 comments

How so? Can you elaborate? Genuinely interested
Well, a naive, overly strong formulation of the efficient markets hypothesis may imply that P=NP. Something like "an optimal trading strategy is a function depending on the entire market history, and in order to find an optimal trading strategy, one must check an exponentially large space of such functions."

The paper is here: https://arxiv.org/pdf/1002.2284.pdf. They do a sketchy reduction to an extremely stylized model of the market from the knapsack problem and 3-SAT.

Here is a paper on it : https://arxiv.org/pdf/1002.2284.pdf
Google 'likelihood of P = NP' or 'efficient market hypothesis P = NP'
Rather than using the metaphors from one field in another field whose day-to-day has little to do with those concepts, try reading a book:

https://www.amazon.com/Efficiently-Inefficient-Invests-Marke...