This paper introduces a model of boundedly rational observational learning, which is rationally founded and applicable …

suggests a trade-off of using coarser versus finer representations of the strategy set when it comes to learning. …

infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … necessitates of large, possibly unrealistically so, degrees of myopia. The same result persists under infinite-horizon learning …, given that agents are still remarkably far-sighted. But, under Euler-equation learning, the model can fit the data with only …

suggests a trade-off of using coarser versus finer representations of the strategy set when it comes to learning. …