. We consider a dynamic game in which firms improve both a new and a rival old technology while learning about the relative …

We analyse some practical aspects of implementing adaptive learning in the context of forward-looking linear models. In … gradient and constant gain learning. We propose three ways of initializing, one that uses randomly generated data, a second … and evolution of macroeconomic variables not only depend on the learning algorithm, but on the initial conditions as well …

. Bayesian learning implies that beliefs about the likelihood of rare disasters drop to a much more pessimistic level once a … between rational and adaptive Bayesian learning. Rational learners account for the possibility of future changes in beliefs in …-valued and price-dividend ratios vary less under adaptive versus rational learning for identical priors. …