On the Impossibility of Informationally Efficient Markets

A paper written in 1980 but still relevant to this day and age as it discusses the (im)possibility of an EMH (Efficient Market Hypothesis)..

In this paper, Grossman & Stiglitz from the University of Pennsylvania argues that as information is costly, prices cannot perfectly reflect the information which is available, since if it did, those who spent resources to obtain it would receive no compensation, leading to the conclusion that an informationally efficient market is impossible.

Read the full paper here.