TOWARD UNDERSTANDING THE MEASUREMENT OF MARKET-EFFICIENCY

A variety of measures have been proposed in the literature to assess m arket efficiency and resulting losses to consumers. The authors provid e an integrated review and summary of the findings in this body of lit erature. They critically examine properties of different measures of e fficiency and discuss strengths and weaknesses of each measure. They a lso assess the theoretical linkage of each of the measures with the co ncept of marker efficiency, and empirically study the relationships be tween measures. The authors conclude with guidelines regarding the app ropriate use of these measures and suggest several areas for further r esearch.