Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162284
Authors: 
Hommes, Cars
Year of Publication: 
2017
Series/Report no.: 
Tinbergen Institute Discussion Paper 17-018/II
Abstract: 
This essay links some of my own work on expectations, learning and bounded rationality to the inspiring ideas of Jean-Michel Grandmont. In particular, my work on consistent expectations and behavioral learning equilibria may be seen as formalizations of JMG's ideas of self-fulfilling mistakes. Some of our learning-to-forecast laboratory experiments with human subjects have also been strongly influenced by JMG's ideas. Key features of self-fulfilling mistakes are multiple equilibria, excess volatility and persistence amplification.
Subjects: 
expectations
learning
bounded rationality
chaos
almost self-fulfilling equilibria
laboratory experiments
JEL: 
D84
D83
E32
C92
Document Type: 
Working Paper

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