The Rational Market

Eric Falkenstein defends it:

People do their best, and usually the phalanx of assumptions and theories that underly a belief are so comlex you can not fully articulate why you believe something. That does not mean your belief is irrational, just that in the real world, many things are very complicated, and you can't work backward to isolate essential differences. Even if you could, there would be many assumptions that are also really unverifiable opinions, not that they don't have data, just like saying the minimum wage causes unemployment, you don't have enough data to prove it one way or the other to a suffficiently skeptical person. So it's an infinite regress. Are these disagreements, manifested in markets where prices change all the time, sometimes violently, irrational? It would be nice if we all could agree on the facts and theories, and that they be correct, but that's rather naive.