In modeling expectation formation, economic agents are usually viewed as forming expectations adaptively or in accordance with some rationality postulate. We offer an alternative nonlinear model where agents exchange their opinions and information with each other. Such a model yields multiple...

In the process of expectations formation, autonomous economic agents are usually assumed to form homogeneous expectations, e.g. adaptive or extrapolative, on former or current evaluations, or to act according to the rational-expectations hypothesis. In this paper we use a model of interdependent...