Anufriev, Mikhail; Hommes, Cars - In: American Economic Journal: Microeconomics 4 (2012) 4, pp. 35-64
In recent "learning to forecast" experiments (Hommes et al. 2005), three different patterns in aggregate price behavior have been observed: slow monotonic convergence, permanent oscillations, and dampened fluctuations. We show that a simple model of individual learning can explain these...