Bao, Te; Hommes, Cars; Sonnemans, Joep; Tuinstra, Jan - 2012
Recent studies suggest that the type of strategic environment or expectation feedback can have a large impact on … large unexpected shocks. Markets with negative expectation feedback (strategic substitutes) quickly converge to the new … fundamental, while markets with positive expectation feedback (strategic complements) do not converge, but show under-reaction in …