The aim of this paper is to simulate profit expectations as an emergent property using an agent based model. The paper … builds upon adaptive expectations, interactive expectations and small world networks, combining them into a single adaptive … interactive profit expectations model (AIE). Understanding the diffusion of interactive expectations is aided by using a network …

The aim of this paper is to simulate profit expectations as an emergent property using an agent based model. The paper … builds upon adaptive expectations, interactive expectations and small world networks, combining them into a single adaptive … interactive profit expectations model (AIE). Understanding the diffusion of interactive expectations is aided by using a network …

demand and overturns their expectations, generating a bust. This emphasizes a novel role for imperfect common knowledge …

of consumers in their expectations about the general state of the economy, even if their pessimism were not based on …