Financial markets: are they epistemically efficient? by Lisa H. Herzog

Lisa Herzog

The Efficient Market Hypothesis popularized the picture according to which financial markets are real-time mirrors of the economy. They are automatically epistemically efficient because all epistemic inefficiencies would be removed by savvy arbitrageurs by incorporating all publicly available knowledge. This would justify the financial market’s central role in economic and public life.
Lisa argues against this picture: heterodox economists, economic sociologists, and practitioners have provided insights that lead to a very different account of what happens in financial markets. Lisa maintains that epistemic efficiency should be understood as a principle (maybe one among others) for the design and regulation of financial markets. In particular, she argues that instead of assuming that financial markets should be deregulated as much as possible to process knowledge efficiently, we should ask which regulation is needed to achieve something like epistemic efficiency, or at least to prevent the greatest obstacles to it.

This meeting of the Phinance Online Seminars will discuss Lisa’s thesis with contributions from Melissa Vergara Fernández (Erasmus University Rotterdam), Joakim Sodenberg (University of Gothenburg), and Lisa herself, which will be followed by an open debate.

17:00 CET, 25 January 2022



Lisa Herzog
University of Groningen


Melissa Vergara Fernández
Erasmus University Rotterdam
Joakim Sandberg 
University of Gothenburg


Chair Emiliano Ippoliti, Sapienza University of Rome

Phinance Online Seminars are organized by Phinance, a Philosophy & Finance Network

Open to the public. Zoom link: