Expectations in Experiments
Working Paper by
The rational expectations hypothesis is one of the cornerstones of current economic theorising. this review discusses a number of experiments that focus on expectation formation [...]
Read moreAmsterdam University node
Behavioral Rationality and Heterogeneous Expectations in Complex Economic Systems
Publication by Cars H. Hommes
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Cars Hommes – How Expectations Interact to Create Bubbles
How do economists make their models work. By assuming that investors have rational expectations and that every market participant is alike. However, things quickly get [...]
Read moreCars Hommes – New Book
“Behavioral Rationality and Heterogeneous Expectations in Complex Economic Systems ” by Cars Hommes, published by Cambridge University Press. The pdf file of the introductory chapters can [...]
Read moreIndividual expectations, limited rationality and aggregate outcomes
Publication by Cars H. Hommes, Jan Tuinstra, Joep Sonnemans and Te Bao
Recent studies suggest that the type of strategic environment or expectation feedback can have a large impact on whether the market can learn the rational [...]
Read moreTiziana Assenza: Animal Spirits, Heterogeneous Expectations and the Amplification and Duration of Crises.
INEXC-Conference : International Network on Expectational Cordination. Friday 29th June. Collège de France, 11 Place Marcelin Berthelot, 75005 Paris. Click here to see the video
Read moreFlorian Wagener: Experiments and Expectations.
INEXC-Conference : International Network on Expectational Cordination. Wednesday 27th June. Collège de France, 11 Place Marcelin Berthelot, 75005 Paris. Click here to see the video
Read moreMore hedging instruments may destabilize markets
Publication by Cars H. Hommes, Florian Wagener and William A. Brock
This paper formalizes the idea that more hedging instruments may destabilize markets when traders have heterogeneous expectations and adapt their behavior according to performance-based reinforcement [...]
Read moreThe heterogeneous expectationshypothesis: Some evidence from the lab
Publication by Cars H. Hommes
This paper surveys learning-to-forecast experiments (LtFEs) with human subjects to test theories of expectations and learning. Subjects must repeatedly forecast a market price, whose realization [...]
Read moreDoes eductive stability imply evolutionary stability?
Publication by Cars H. Hommes and Florian Wagener
This note presents a simple example of a model in which the unique rational expectations (RE) steady state equilibrium is eductively stable in the sense [...]
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