Markets are efficient if and only if P = NP

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Markets are efficient if and only if P = NP

I prove that if markets are efficient, meaning current prices fully reflect all information available in past prices, then P = NP , meaning every computational problem whose solution can be verified in polynomial time can also be solved in polynomial time. I also prove the converse by showing how we can “program” the market to solve NP -complete problems. Since P probably does not equal NP , ma...

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ژورنال

عنوان ژورنال: Algorithmic Finance

سال: 2011

ISSN: 2157-6203,2158-5571

DOI: 10.3233/af-2011-007