Assess the credibility of the behavioral critique of the efficient market hypothesis

The behavioral critique of the efficient market hypothesis theory seeks to explain the differences between what the expected price of an asset is compared to what the asset is currently priced at. The credibility of this critique seems strong due to the fact that arbitrage does exist which provides buying opportunities for those that have more information regarding an asset. These arbitrage opportunities are explained by using the behavioral critique of the efficient market hypothesis. For example, the stock price of a company is trading at $45 a share, but market fundamentals indicate the stock should be selling at $50 a share. The difference in the stock price from its implied price is due to the behavior of the market place and not the efficient use of all information provided.