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QRE. The limiting points of this correspondence are shown to be Markov perfect equilibria. Furthermore, the logit Markov … computation of Markov perfect equilibria, and also as a selection criterion. …
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The problem of expectations in economic models is reviewed through the intellectual development of the author. Initial efforts at macroeconomic modeling such as Foley-Sidrauski (Foley and Sidrauski 1971) treated expectations as conditioning variables for representative agent stock demands and...
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