Beyond performativity, how and why American courts should not have used Efficient market hypothesis

Abstract

This article provides a critical perspective on the performativity of the Efficient Market Hypothesis. It showed that this hypothesis is a fiction that created a hyper-reality rather than performed financial markets. Its use by practitioners, particularly courts and judges in the United States, has created a dialogue of deaf and has generated a gap between the observation of real financial markets and the reality practitioners and academics observe from this fiction. This gap has created and fuelled several misunderstandings discussed in this article