Overconfidence has been extensively documented in psychology and economics. This paper studies the long-term interaction between two overconfident agents who learn about common payoff-relevant fundamentals, such as the quality of a joint project or their working environment, and choose how...

This study will examine a dataset that contains 352 observations with 36 distinct variables. The dataset reflects people's thoughts and sentiments regarding a realistic fiction stock market game. The reason for analyzing this data is to identify any trends or patterns that might explain why...

We study settings in which, prior to playing an incomplete information game, players observe many draws of private signals about the state from some information structure. Signals are i.i.d. across draws, but may display arbitrary correlation across players. For each information structure, we...

We study an equilibrium-based continuous asset pricing problem for the securities market. In the previous work [16], we have shown that a certain price process, which is given by the solution to a forward backward stochastic differential equation of conditional McKean-Vlasov type, asymptotically...

We model the learning process of market traders during the unprecedented COVID-19 event. We introduce a behavioral heterogeneous agents’ model with bounded rationality by including a correction mechanism through representativeness (Gennaioli et al., 2015). To inspect the market crash induced...

As envisaged in the Sustainable Development Goals, eradicating poverty by 2030 is among the most important steps to achieve a better and more sustainable future. A key contribution to reach this target is to ensure that vulnerable households are effectively protected against weather-related...

The study proposes an agent-based model to investigate how adoption of climate smart agriculture (CSA) affects food security. The analysis investigates the role of social and ecological pressures (i.e. community network, climate change and environmental externalities) on the adoption of physical...

This paper presents an agent-based model (ABM) of endogenous arrival of technological paradigms and new sectors entailing different patterns of labour creation and destruction, as well as of consumption dynamics. The model, building on the labour-augmented K+S ABM, addresses the long-term...

We study the impact of alternative innovation policies on the short- and long-run performance of the economy, as well as on public finances, extending the Schumpeter meeting Keynes agent- based model (Dosi et al., 2010). In particular, we consider market-based innovation policies such as R&D...

We model the learning process of market traders during the unprecedented COVID-19 event. We introduce a behavioral heterogeneous agents’ model with bounded rationality by including a correction mechanism through representativeness (Gennaioli et al., 2015). To inspect the market crash induced...