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This work, which shall contribute to the Fest "A Just Society: Honouring Joseph Stiglitz", discusses a major unifying theme in Joe Stiglitz monumental work, namely, the analysis of economies characterised by persistent learning and coordination hurdles. In his analysis Joe is in many respects a...
Persistent link: https://www.econbiz.de/10011458677
, has always considered sets of individuals with assumed characteristics, namely the level of knowledge, although in an … individuals, was characterised by a certain level of knowledge that, indeed, could be associated with the one of its …, since the very first economic models of the government, it was assumed that the level of knowledge of society, represented …
Persistent link: https://www.econbiz.de/10011502970
become approximate common-knowledge. In contrast, if the agents' observations come from a countably infinite signal space …
Persistent link: https://www.econbiz.de/10012776664
We propose a model of learning when experimentation is possible, but unawareness and ambiguity matter. In this model, complete lack of information regarding the underlying data generating process is expressed as a (maximal) family of priors. These priors yield posterior inferences that become...
Persistent link: https://www.econbiz.de/10012928769
In this paper I propose a novel abstract mechanism for the creation and diffusion of knowledge and use an agent based … explain and the stocks of knowledge available in a society, be it individually or collectively. I find that the aggregate … number of knowledge units in a society increases more slowly, the more naive its inhabitants are. I also find that the …
Persistent link: https://www.econbiz.de/10012591877
Persistent link: https://www.econbiz.de/10011941755
In case of multiple source lending even solvent firms may be forced into bankruptcy due to uncoordinated credit withdrawals of their lenders. This paper analyzes whether a debtor firm can thwart such inefficient liquidations by offering creditors the option to delay their foreclosure decision...
Persistent link: https://www.econbiz.de/10003636509
Models with heterogeneous interacting agents explain macro phenomena through interactions at the micro level. We propose genetic algorithms as a model for individual expectations to explain aggregate market phenomena. The model explains all stylized facts observed in aggregate price fluctuations...
Persistent link: https://www.econbiz.de/10003777257
Central bank communication plays an important role in shaping market participants’ expectations. This paper studies a simple nonlinear model of monetary policy in which agents have incomplete information about the economic environment. It shows that agents’ learning and the dynamics of the...
Persistent link: https://www.econbiz.de/10003781685
Persistent link: https://www.econbiz.de/10003807183