The Greater Fool theory, which Harrison and Kreps proposed in 1978, translates to the bigger fool, and for the sake of memory convenience, I call it the Bo Silly Theory. Its conclusions about the price-volume relationship are more radical than the Miller hypothesis presented in the previous lecture, arguing that:
At equilibrium, prices will exceed everyone's expectations, including those of optimists. In its view, the more frequently traded in the short term, the higher the asset price.