Economics 101 teaches that trading is rational only when it makes both parties better off. A baseball team with two good shortstops but no pitching trades one of them to a team with plenty of good arms but a shortstop who’s batting .190. Or an investor who is getting ready to retire cashes out her stocks and trades them to another investor who is j

Our argument in this chapter will go through the following propositions, which serve as headings for their own sections of discussion: Value is subjective; uncertainty is not risk; economic complexity resists equilibria; markets aggregate prices, not information; and, markets tend to leverage efficiency.

so deeply uncomfortable saying, “I don’t know” or “it depends,” especially in finance.