Eductive Expectations Coordination in Dynamic Economies : the Case of Deterministic Cycles.

In this paper we study expectations coordination on a deterministic 2-cycle by an "eductive" approach in which agents are concerned with forecasting the forecasts of others. This approach is grounded in some Common Knowledge assumption. We show that eductively stable 2-cycles exit. We also show that heterogeneity of fundamentals and expectations create difficulties to eductive coordination.

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Year of publication:	2000
Authors:	Negroni, G.
Institutions:	Département et Laboratoire d'Économie Théorique Appliquée (DELTA), École Normale Supérieure (ENS Paris)
Subject:	EXPECTATIONS \| FORECASTS

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Series:	DELTA Working Papers.
Type of publication:	Book / Working Paper
Notes:	22 pages
Classification:	D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legistures, and Voting Behavior
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005811863