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Learning from the Expectations of Others

Granato, Jim; Guse, Eran; Wong, M. C. Sunny - 2012

The assumption of perfectly rational representative agents is now commonly questioned. This paper explores the equilibrium properties of boundedly rational heterogeneous agents. We combine an adaptive learning process in a modified cobweb model within a Stackleberg framework. We assume that...

Persistent link: https://www.econbiz.de/10014104846

Stability under learning of equilibria in financial markets with supply information

Heinemann, Maik - 2009

In a recent paper Ganguli and Yang [2009] demonstrate, that there can exist multiple equilibria in a financial market model á la Grossman and Stiglitz [1980] if traders possess private information regarding the supply of the risky asset. The additional equilibria differ in some important...

Persistent link: https://www.econbiz.de/10003828717

Asymmetric Information and Misaligned Inflation Expectations

Han, Zhao - 2022

Recent survey evidence reveals misaligned inflation expectations among economic agents. While households associate higher expected inflation with lower output growth, professional forecasters often link higher future inflation to stronger economic fundamentals and higher output growth. Firms'...

Persistent link: https://www.econbiz.de/10014078833

Information acquisition and learning from prices over the business cycle

Mäkinen, Taneli; Ohl, Björn - 2012

We study firms' incentives to acquire costly information in booms and recessions to understand the role of endogenous information in explaining asymmetric business cycles. When the economy has been in a boom in the previous period, and firms enter the current period with an optimistic belief,...

Persistent link: https://www.econbiz.de/10009501052

Beauty Contests Under Private Information and Diverse Beliefs : How Different?

Kurz, Mordecai - 2007

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

Learning From Prices : Information Aggregation and Accumulation in an Asset Price Model

Berardi, Michele - 2020

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

Permanent and Transitory Policy Shocks in an Empirical Macro Model with Asymmetric Information

Kozicki, Sharon; Tinsley, Peter A. - 2004

Despite a large literature documenting that the efficacy of monetary policy depends on how inflation expectations are anchored, many monetary policy models assume: (1) the inflation target of monetary policy is constant; and, (2) the inflation target is known by all economic agents. This paper...

Persistent link: https://www.econbiz.de/10014074174

An explanation for the price puzzle : asymmetric information and expectation dynamics

Tas, Bedri Kamil Onur - In: Journal of macroeconomics 33 (2011) 2, pp. 259-275

Persistent link: https://www.econbiz.de/10009248401

What Drives Inflation Expectations in Brazil? Public versus Private Information

Areosa, Waldyr - 2016

This article applies a noisy information model with strategic interactions à la Morris and Shin (2002) to a panel from the Central Bank of Brazil Market Expectations System to provide evidence of how professional forecasters weight private and public information when building inflation...

Persistent link: https://www.econbiz.de/10012999818

Information acquisition and learning from prices over the business cycle

Mäkinen, Taneli; Ohl, Björn - 2012

Persistent link: https://www.econbiz.de/10010281437

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