Pricing accuracy definition
Pricing accuracy means something different from the term “market efficiency.” Pricing ac- curacy measures the precision with which prices provide signals to encourage efficient resource allocation. Market efficiency refers to the dif- ficulty of making trading profits on the basis of available information. In a market which is about to be cornered, high prices are consistent with market efficiency because they accurately forecast the probability of the corner, but not consistent with pricing accuracy because prices are providing signals to mis-allocate resources.
Pricing accuracy means something differ-