Bounded Memory, Overparameterized Forecast Rules, and Instability

We consider an environment in which traders with finite memory update their forecast rules at random intervals by OLS. In this context, overparameterization of the forecast rules can destabilize the learning dynamics. This instability tends to be attenuated by greater memory and less frequent updating

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Year of publication:	[2006]
Authors:	Georges, Christophre
Publisher:	[2006]: [S.l.] : SSRN
Subject:	Lernprozess \| Learning process \| Erwartungsbildung \| Expectation formation \| Agentenbasierte Modellierung \| Agent-based modeling \| Theorie \| Theory

Extent:	1 Online-Ressource (9 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 2006 erstellt
Other identifiers:	10.2139/ssrn.940666 [DOI]
Classification:	D83 - Search, Learning, Information and Knowledge ; D84 - Expectations; Speculations ; E44 - Financial Markets and the Macroeconomy
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012732698