Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Limited profit in predictable stock markets   It has been assumed that arbitrage profits are not possible in efficient
markets, because future prices are not predictable. Here we show that
predictability alone is not a sufficient measure of market efficiency. We
instead propose to measure inefficiencies of markets in terms of the maximal
profit an ideal trader can take out from a market. In a stock market model with
an evolutionary selection of agents this method reveals that the mean relative
amount of realizable profits $P$ is very limited and we find that it decays
with rising number of agents in the markets. Our results show that markets may
self-organize their collective dynamics such that it becomes very sensitive to
profit attacks which demonstrates that a high degree of market efficiency can
coexist with predictability.

16
The categories of this paper are: stat
22
The categories of this paper are: chao-dyn
3
The categories of this paper are: physics
28
The categories of this paper are: alg-geom
6
The categories of this paper are: astro-ph
20
The categories of this paper are: acc-phys
30
The categories of this paper are: q-alg
11
The categories of this paper are: hep-lat
12
The categories of this paper are: nucl-th
7
The categories of this paper are: hep-th
0
The categories of this paper are: hep-ph
23
The categories of this paper are: solv-int
37
The categories of this paper are: supr-con
21
The categories of this paper are: adap-org
33
The categories of this paper are: plasm-ph
5
The categories of this paper are: gr-qc