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When Efficient Market Hypothesis Meets Hayek on Information: Beyond a Methodological Reading

Author

Listed:
  • Nathanaël Colin-Jaeger

    (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Thomas Delcey

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Hayek and the Efficient Market Hypothesis (EMH) are often seen as proposing a similar theory of prices. Hayek is seen as proposing to understand prices as information conveyer, incorporating information during the process of competition, while EMH is defined as the fact that all information in a market is integrated into assets prices. This paper explains how a lineage between Hayek and the EMH can be illustrated while taking into account these differences. We introduce in order to defend this claim a distinction between methodological and epistemological differences: methodological differences are seen as the way an author operationalizes his broader conceptions whereas epistemology is defined as the core concepts of his theory. We particularly want to shed light on the homogeneous shift that can be identified in the epistemology of Hayek and the EMH. We conclude that this shift fleshes out the understanding that some authors have of neoliberalism.

Suggested Citation

  • Nathanaël Colin-Jaeger & Thomas Delcey, 2020. "When Efficient Market Hypothesis Meets Hayek on Information: Beyond a Methodological Reading," Post-Print hal-01933895, HAL.
    • Handle: RePEc:hal:journl:hal-01933895
    DOI: 10.1080/1350178X.2019.1675896
    Note: View the original document on HAL open archive server: https://hal.science/hal-01933895
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    References listed on IDEAS

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    Cited by:

    1. Tianbao Zhou & Xinghao Li & Peng Wang, 2021. "Statistics and Practice on the Trend’s Reversal and Turning Points of Chinese Stock Indices Based on Gann’s Time Theory and Solar Terms Effect," Mathematics, MDPI, vol. 9(15), pages 1-24, July.
    2. Nathanaël Colin-Jaeger & Étienne Wiedemann, 2021. "Aux origines nietzschéennes des ambiguïtés du concept d'entrepreneur : Schumpeter lecteur de Nietzsche," Post-Print halshs-03271422, HAL.
    3. Nathanaël Colin-Jaeger & Etienne Wiedemann, 2019. "Aux origines nietzschéennes des ambiguïtés du concept d'entrepreneur : Schumpeter lecteur de Nietzsche," Working Papers halshs-03271422, HAL.

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    Keywords

    Epistemology of economics; Efficient market hypothesis; Hayek; Information; Neoliberalism;
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