. Insofar as individuals typically construct images of high quality, why do they sometimes do the opposite? The standard …. And of course, some people appear to report quality above what they believe to be true. We develop a model of strategic …

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 …

This essay links some of my own work on expectations, learning and bounded rationality to the inspiring ideas of Jean …-Michel Grandmont. In particular, my work on consistent expectations and behavioral learning equilibria may be seen as formalizations of … JMG's ideas of self-fulfilling mistakes. Some of our learning-to-forecast laboratory experiments with human subjects have …

demand. The former learning effect, combined with the latter real-options effect, adversely affect firms' entry decisions and …

agents employ the same recursive learning rule to update beliefs but are characterized by different memory parameters. The … peculiarity of the learning mechanism is that the learning rate is not vanishing in the limit. Differently from what is obtained … in the case of a vanishing learning step, i.e., the stability conditions in the heterogeneous agents case are those of …

policy rules: the assumed manner of expectations formation. Following a considerable literature on learning, it is assumed … learning dynamics converge to the equilibrium predicted by rational expectations equilibrium analysis. This question is … any of a broad class of specifications of the learning dynamics. This suggests the Taylor rule to be desirable from the …

. In addition, stock prices are partly driven by noise, and therefore negatively predict returns on announcement days when … noise is revealed and the market corrects itself …