From self-fulfilling mistakes to behavioral learning equilibria
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| Publication date | 2017 |
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| Book title | Sunspots and nonlinear dynamics |
| Book subtitle | Essays in honor of Jean-Michel Grandmont |
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| ISBN (electronic) |
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| Series | Studies in Economic Theory |
| Pages (from-to) | 97-123 |
| Number of pages | 27 |
| Publisher | Cham: Springer |
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| Abstract | This essay links some of my own work on expectations, learning and bounded rationality to the inspiring ideas of Jean-Michel Grandmont. In particular, my work on consistent expectations and behavioral learning equilibria may be seen as formalizations of JMG’s ideas of self-fulfilling mistakes. Some of our learning-to-forecast laboratory experiments with human subjects have also been strongly influenced by JMG’s ideas. Key features of self-fulfilling mistakes are multiple equilibria, excess volatility and persistence amplification. |
| Document type | Chapter |
| Language | English |
| Published at | https://doi.org/10.1007/978-3-319-44076-7_5 |
| Downloads |
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