Financial market observers may have suffered a bit of cognitive whiplash with this week’s announcement of the joint winners of the Nobel Prize in economics. Two of the winners appear, on first glance, to be polar opposites. Eugene Fama is the father of the iconic efficient markets theory, and Robert Shiller suggests that markets are anything but efficient – often greatly overreacting or underreacting to new information. But Wharton finance professor Amir Yaron says that the ideas of the two winners are ultimately complementary. In this Knowledge at Wharton podcast, he explains why. An edited transcript of the conversation follows. Knowledge at Wharton: We’re meeting today with Amir Yaron, a Wharton finance professor, about the recent awarding of the Nobel Prize in economics to Eugene Fama and Lars Peter Hansen of the University of Chicago, and Robert Shiller, from Yale. All won for their work covering trends in asset prices. So, thank you for joining us at Knowledge at Wharton today, Amir.…