Individual expectations, limited rationality and aggregate outcomes

DOI10.1016/J.JEDC.2012.03.006zbMATH Open1345.91088OpenAlexW3125644265MaRDI QIDQ310944FDOQ310944

Authors: Te Bao, Joep Sonnemans, Jan Tuinstra, Cars Hommes 

Publication date: 28 September 2016

Published in: Journal of Economic Dynamics and Control (Search for Journal in Brave)

Full work available at URL: https://papers.tinbergen.nl/12016.pdf

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zbMATH Keywords

experimental economicsexpectation feedbackheuristic switching modelstrategic substitutes and strategic complementsunder and overreaction

Mathematics Subject Classification ID

Experimental studies (91A90) Microeconomic theory (price theory and economic markets) (91B24) Financial applications of other theories (91G80)

Cites Work

• Experience-weighted Attraction Learning in Normal Form Games
• Intrinsic heterogeneity in expectation formation
• A Rational Route to Randomness
• Heterogeneous beliefs and routes to chaos in a simple asset pricing model
• Expectations and learning under alternative monetary regimes: An experimental approach
• Price stability and volatility in markets with positive and negative expectations feedback: an experimental investigation
• Underreaction to fundamental information and asymmetry in mispricing between bullish and bearish markets. An experimental study
• Indeterminacy of Equilibria in a Hyperinflationary World: Experimental Evidence
• Cooperation in experimental games of strategic complements and substitutes
• Limited Rationality and Strategic Interaction: The Impact of the Strategic Environment on Nominal Inertia
• The heterogeneous expectations hypothesis: Some evidence from the lab
• Expectationally driven market volatility: An experimental study
• Herding, a-synchronous updating and heterogeneity in memory in a CBS

Cited In (21)

• Macroeconomic expectations, central bank communication, and background uncertainty: a COVID-19 laboratory experiment
• When panic makes you blind: a chaotic route to systemic risk
• The impact of interest rate policy on individual expectations and asset bubbles in experimental markets
• Coordination on bubbles in large-group asset pricing experiments
• Can competition between forecasters stabilize asset prices in learning to forecast experiments?
• INDIVIDUAL EXPECTATIONS AND AGGREGATE BEHAVIOR IN LEARNING-TO-FORECAST EXPERIMENTS
• When speculators meet suppliers: positive versus negative feedback in experimental housing markets
• Limited Rationality and Strategic Interaction: The Impact of the Strategic Environment on Nominal Inertia
• Expectations and industry location: a discrete time dynamical analysis
• The heterogeneous expectations hypothesis: Some evidence from the lab
• Effects of different ways of incentivizing price forecasts on market dynamics and individual decisions in asset market experiments
• Interactions between stock, bond and housing markets
• Expectationally driven market volatility: An experimental study
• The commitment effect in belief evolution
• How do experienced traders respond to inflows of inexperienced traders? An experimental analysis
• The rationality of expectations formation
• Limited rationality and the strategic environment: further theory and experimental evidence
• The strategic environment effect in beauty contest games
• Who inflates the bubble? Forecasters and traders in experimental asset markets
• Experimental evidence on inflation expectation formation
• Price stability and volatility in markets with positive and negative expectations feedback: an experimental investigation

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