What exactly is “market inefficiency?” While the term originates in business economics, it has become very familiar to baseball fans with an interest in sabermetrics, or the empirical analysis of baseball statistics. In the world of finance and economics, an inefficient market alludes to when stocks are inaccurately overpriced or underpriced in relation to the market at large (this is an oversimplification but work with me). In sports, it’s meant to indicate when athletes are either overvalued or undervalued based on variable determining factors (salary cap implications, general contract valuations, or their skill set, for example). To take advantage of this phenomenon, a person (or team in this instance) would, simply put, have to “zig” while the rest of the competition “zags.
New York City FC and market inefficiency
