Assenza, Tiziana; Brock, William; Hommes, Cars - Dipartimenti e Istituti di Scienze Economiche, … - 2013
We introduce a simple equilibrium model of a market for loans, where households lend to firms based on heterogeneous expectations about their loan default probability. Agents select among heterogeneous expectation rules, based upon their relative performance. A small fraction of pessimistic...