This chapter provides a survey of the recent work on learning in the context of macroeconomics. Learning has several … roles. First, it provides a boundedly rational model of how rational expectations can be achieved. Secondly, learning acts … as a selection device in models with multiple REE (rational expectations equilibria). Third, the learning dynamics …

monotone continuity). Thus, the results provide a framework for the analysis of behavior in games under essentially any …

How do individuals value noisy information that guides economic decisions? In our laboratory experiment, we find that … individuals under-react to increasing the informativeness of a signal, thus undervalue high-quality information, and that they … disproportionately prefer information that may yield certainty. Both biases appear to be mainly due to non-standard belief updating. We …