Lee, Lung-fei; Li, Ji; Lin, Xu - In: The Review of Economics and Statistics 96 (2014) 3, pp. 402-417
This paper extends Brock and Durlauf's (2001a, 2001b) binary choice complete network (or group interaction) model with homogeneous rational expectations to a general network model with heterogeneous rational expectations. In our model, individuals will form expectations regarding peers'...