Markets and expectations -- Expected utility maximization -- Effects of heterogeneous expectations -- Forecasting among alternative strategies under uncertainty -- Expectations in time series models -- Costly information and decision making -- Applied welfare economics with boundedly rational...

Markets and expectations -- Expected utility maximization -- Effects of heterogeneous expectations -- Forecasting among alternative strategies under uncertainty -- Expectations in time series models -- Costly information and decision making -- Applied welfare economics with boundedly rational...

I study how a forward-looking decision maker experiments on unknown alternatives of spatially correlated utilities modeled by a Brownian motion so that similar alternatives yield similar utilities. For example, a firm experiments on its size that yields unknown, spatially correlated...