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 …

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

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 …

. 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 …

The paper investigates social-learning when the information structure is not commonly known. Individuals repeatedly … interact in social-learning settings with distinct information structures. In each round of interaction, they use their … behavior in the long-run if and only if individuals distinguish social-learning settings and receive rich feedback after each …

bias (systematic mistakes) or noise (unsystematic mistakes). We develop a framework for quantifying the level of noise in … structure for individual expectations. Using data from professional forecasters, we find that the magnitude of noise is large …