Information Distributed Fractally in the Market
Last week I couldn’t get to sleep because I was thinking about economics. I stumbled upon an interesting theory. If you believe in the Efficient Market Hypothesis, and you believe Mandelbrot when he says that a stock price moves up and down in a fractal manner, then these two beliefs imply that the information about the stock (a direct reflection of its price) is held in a fractal way among the market participants.
This probably has some significance for prediction markets, but I don’t know what.