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The Process That Quickly Eliminates Price Discrepancies in Efficient Markets

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The process that quickly eliminates price discrepancies in efficient markets is known as


Definitions:

Reinforcement Schedule

The pattern or timing of delivery of rewards or punishments that influences the rate and strength of a behavior in learning.

Lottery Numbers

Randomly selected numbers used in games of chance for the purpose of winning prizes.

Fixed-Ratio Schedule

A reinforcement schedule in behavior analysis where a response is reinforced only after a specified number of responses have been made.

Extinction

In psychology, the gradual weakening of a conditioned response when the reinforcement is withheld.

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