The paper investigates social-learning when the information structure is not commonly known. Individuals repeatedly … interact in social-learning settings with distinct information structures. In each round of interaction, they use their … behavior in the long-run if and only if individuals distinguish social-learning settings and receive rich feedback after each …

The adaptive learning approach has been fruitfully employed to model the formation of aggregate expectations at the … macroeconomic level, as an alternative to rational expectations. This paper uses adaptive learning to understand, instead, the … formation of expectations at the micro-level, by focusing on individual expectations and, in particular, trying to account for …

We develop a model of firm learning in volatile markets with noisy signals and test its predictions using historical … from differences in expectations rather than market conditions. We find evidence for the model's predictions that … improvements from learning are faster where market signals are noisier. …

demand. The former learning effect, combined with the latter real-options effect, adversely affect firms' entry decisions and …

This exercise offers an innovative learning mechanism to model economic agent's decision-making process using a deep … reinforcement learning algorithm. In particular, this AI agent is born in an economic environment with no information on the … adjusting its actions accordingly (i.e., online learning). I illustrate that the economic agent under deep reinforcement …

Agents forming adaptive expectations generally make systematic mistakes. This characterization has fostered the … rejection of adaptive expectations in macroeconomics. Experimental evidence, however, shows that in complex environments human … subjects frequently rely on adaptive heuristics – model-consistent expectations being simply too difficult or impossible to …

macroeconomic variables and their corresponding expectations. In the empirical analysis, we exploit direct data on expectations from … surveys. To explain the joint evolution of realized variables and expectations, we adopt a DSGE-VAR approach, which allows us … failure of New Keynesian models under the rational expectations hypothesis to account for the dynamic interactions between …

local interactions. Despite the fact that the rational expectations equilibrium (REE) is characterized by a simple pricing …

develop a behavioral New Keynesian macroeconomic model, in which we relax the assumption of rational expectations. Agents are … variances to affect the economy. In forming expectations, agents may be subject to shifts in optimism and pessimism (sentiment …

quadratic approximation. Aggregation renders the belief distribution an aggregate state variable. Diverse expectations change …