Chris MACRAE: >Whilst this fundamental contextual bias in "what corporate performance is defined to be" rules, the chances of markets being efficient dwindles absolutely below zero.<
I used to do criminal defense work, so I have some experience with people whose time horizon is very, very short, and who, once that is recognized, are plausibly seen as acting "rationally." I therefore have no difficulty seeing that some corporate executives (and, of course, not they alone) are acting quite "rationally" when they demonstrate a strong preference for present goods. I -- without imputing either insanity or hypocrisy -- also have no difficulty seeing that even as they do so, they are quite capable of crafting their actions so as to appear to be acceptable to those with significantly stronger regard for future good. Any notion of efficiency is of little use which does not take into realistic account the consequences of widely-varying ability and willingness to weigh future against present "properly" (meaning, ultimately, "more or less as the assessing writer would have them do"). As typically employed, it is my impression, "efficiency" is essentially timeless. That is, all weighings of future against present are dealt with by application of a single discount rate. Michael Michael E. Etchison Texas Wholesale Power Report MLE Consulting www.mleconsulting.com 1423 Jackson Road Kerrville, TX 78028 (830) 895-4005
