In this paper we study expectations coordination on a deterministic 2-cycle by an "eductive" approach in which agents are concerned with forecasting the forecasts of others. This approach is grounded in some Common Knowledge assumption. We show that eductively stable 2-cycles exit. We also show...

In this paper we study expectations coordination on the stationary state in a one dimensional economy. We allow for two sources of heterogeneity : the first concerns the fundamentals of the economy, the second the adaptive learning rules. Specifically we consider heterogeneous adaptive learning...