Describe the behavioral challenges in achieving efficiency.  

The mathematician’s guide to capital market efficiency

The human element can be a factor in behavioral challenges that hinder efficiency. Some people are reluctant to change, despite the potential for financial gain or cost-savings, due to their comfort level, familiarity and fear of the unfamiliar. Not all individuals will act to their benefit when it is about efficiency. For example, they might prioritize job security and recognition before being efficient.

Finaly, an individual may make a choice that initially appears to be the most efficient decision but which does not take into account all of its externalities or effects over time. These could cause additional expenses in the future.