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in this model. This note shows that these additional equilibria are always unstable under learning. This is true for both … eductive learning following Guesnerie [2002] and adaptive learning via leastsquares estimation (cf. Marcet and Sargent [1988 … clear cut, since this equilibrium might be unstable under eductive learning while it is always stable under adaptive …
Persistent link: https://www.econbiz.de/10003828717
private returns to education within the employer learning framework of Farber and Gibbons (1996) and Altonji and Pierret (2001 …
Persistent link: https://www.econbiz.de/10012842590
This paper studies a sequential learning problem where individuals are ambiguous about other people's signal structures …. It finds that ambiguity has an important impact on social learning and provides new insights on the mechanism behind … degree of ambiguity suffices to produce a cascade when signals are bounded and destroys full learning when signals are …
Persistent link: https://www.econbiz.de/10012846991
Can prices convey information about the fundamental value of an asset? This paper considers this problem in relation to the dynamic properties of the fundamental (whether it is constant or time-varying) and the structure of information available to agents. Risk-averse traders receive two...
Persistent link: https://www.econbiz.de/10012828061
private returns to education within the employer learning framework of Farber and Gibbons [1996] and Altonji and Pierret [2001 …
Persistent link: https://www.econbiz.de/10012841583
private returns to education within the employer learning framework of Farber and Gibbons [1996] and Altonji and Pierret [2001 …
Persistent link: https://www.econbiz.de/10012842034
is used to test hypotheses of HB. We show the common knowledge assumptions of the PI theory are implausible. The theories … differ on four main analytical issues. (1) The pricing theory under PI implies prices have infinite memory and at each t … rationality conditions impose restrictions on any HB theory. We explain the tight restrictions on the model's parameters imposed …
Persistent link: https://www.econbiz.de/10012775716
We propose that multinational firms learn about their profitability in a particular market by observing their performance in nearby markets. We first develop a model of firm expectations formation with noisy signals from multiple markets and derive predictions on expectations formation and...
Persistent link: https://www.econbiz.de/10012825991
firm must transfer a large part of the surplus to the inactive firm in order to limit pre-emption. Learning; Pre …
Persistent link: https://www.econbiz.de/10009409636
domain. Such asymmetric learning may help explain documented empirical patterns regarding the differential role of poor vs …
Persistent link: https://www.econbiz.de/10013065977