Shiller’s Nobel Prize

. Read Robert Shiller’s Nobel Prize address (, then briefly respond to these questions: 
a. How are the two views of markets, behavioral and rationalist, opposed? How are they compatible? 
b. What does Shiller mean when he says efficient-market theorists make a huge mistake: Just because markets are unpredictable doesn’t mean they are efficient? Explain. 
c. Can you offer a more nuanced explanation of the efficient markets hypothesis than either of the extreme views, that markets are absolutely efficient or that market participants are predictably irrational? 

Leave a Reply