In this note we study a very simple trial & error learning process in the context of a Cournot oligopoly. Without any …

rational expectations even if time-varying but stationary term premia are allowed for. A hypothesis of rational learning about …

From the model of Hobijn and Jovanovic (2001), we modelize a technological shock with uncertainty. We assume that this … technological shock appears in the shape of new firms. Only a part of these firms will be productive. Uncertainty relates to the … identification of the viable firms. This uncertainty decreases with the time and the diffusion of fundamentalist information that …

technology, the other - demand uncertainty. The impact of these factors on new technology adoption is analyzed. It is shown that … depending on the situation and type of uncertainty, the diffusion uncertainty and jump uncertainty can produce opposite effects. …

incorporates non-technological uncertainty. The former factor follows a process with upward jumps. The impact of these factors on …

Social learning models of investment provide an interesting alternative explanation for sudden changes in investment … behaviour. Caplin and Leahy (1994) develop a model of social learning in which agents learn about the true state of demand from … significant new technology appear to be influenced by social learning because they are more likely to suspend their investment …