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The rational expectations hypothesis is one of the cornerstones of current economic theorising. This review discusses a number of experiments that focus on expectation formation by human subjects and analyses the implications for the rational expectations hypothesis. The experiments show that...
Persistent link: https://www.econbiz.de/10011257595
We propose a general framework for studying the evolution ofheterogeneous beliefs in a dynamic feedback setting. Beliefsdistributions are defined on a continuous space representingthe possible strategies agents can choose from. Agents base theirchoices on past performances. As new information...
Persistent link: https://www.econbiz.de/10011249542
We propose a new framework for studying the evolution of heterogeneous beliefs in a dynamic feedback setting. Beliefs distributions are defined on a beliefs space representing a continuum of possible strategies agents can choose from. Agents base their choices on past performances, re-evaluating...
Persistent link: https://www.econbiz.de/10011255553
Limited memory capacity, retrieval constraints and anchoring are central to expectation formation processes. We develop a model of adaptive expectations where individuals are able to store only a finite number of past experiences of a stochastic state variable. Retrieval of these experiences is...
Persistent link: https://www.econbiz.de/10011255773
beliefs of the employers are self-fulfilling. Theoretically and in an experiment, we investigate under what circumstances …
Persistent link: https://www.econbiz.de/10011256510
works in anindividual decision experiment. Subjects are faced with a sequentialsearch problem. After extensive practice …
Persistent link: https://www.econbiz.de/10011256616
the size of credible deviations. In our experiment, we find support for the relevance of credible deviations. In addition …
Persistent link: https://www.econbiz.de/10011256700
dictator game. In our experiment teams are more selfish than individuals, and the most selfish team member has the strongest …
Persistent link: https://www.econbiz.de/10011256730
We experimentally study the relationship between other-regarding preferences, group identity and political participation. In doing so, we propose a novel group identity induction procedure that succeeds in creating environments where in-group bias is either high or low. At the individual level,...
Persistent link: https://www.econbiz.de/10011256817
We experimentally study the strategic transmission of information in a setting where both cheap talk and money can be used for communication purposes. Theoretically a large number of equilibria exist side by side, in which senders either use costless messages, money, or a combination of the two....
Persistent link: https://www.econbiz.de/10011256889