Paths to efficient prices How does information get impounded in prices If gathering information is costly can price still perfectly reflect information? If market prices deviate from their fundamental values, what bring them back? How do prices derivate from their fundamental values in the first place?Paths to efficient prices • How does information get impounded in prices? • If gathering information is costly, can price still perfectly reflect information? • If market prices deviate from their fundamental values, what bring them back? • How do prices derivate from their fundamental values in the first place?