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. Bayesian learning implies that beliefs about the likelihood of rare disasters drop to a much more pessimistic level once a … between rational and adaptive Bayesian learning. Rational learners account for the possibility of future changes in beliefs in …-valued and price-dividend ratios vary less under adaptive versus rational learning for identical priors. …
Persistent link: https://www.econbiz.de/10009201120
The empirical evidence on rational inattention lags far behind the theoretical developments: micro evidence on the most immediate consequence of observation costs - the infrequent observation of state variables - is not available in standard datasets. We contribute to filling the gap with two...
Persistent link: https://www.econbiz.de/10008468638
In this paper we analyze a consumer choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. We make use of the fact that...
Persistent link: https://www.econbiz.de/10011084678
aggregation jointly shape social learning. Our environment features substantial social learning. We show that learning occurs via …
Persistent link: https://www.econbiz.de/10011201359
%). They occur in both directions, with more over-sampling (39%) than under-sampling (8%). The main difference with the theory … theory, with adversaries sampling more when their own cost is low and when the other adversary's cost is high. Finally, there … is little evidence of learning over the 40 matches of the experiment. …
Persistent link: https://www.econbiz.de/10008528540
policy implications. Last, applications of this theory to other issues such as self-knowledge, willpower and habit formation …
Persistent link: https://www.econbiz.de/10005504250
. We consider a dynamic game in which firms improve both a new and a rival old technology while learning about the relative …
Persistent link: https://www.econbiz.de/10005504449
the Phillips curve the less does optimal policy aim towards learning. …
Persistent link: https://www.econbiz.de/10005497983
We analyse households’ responses to an unanticipated change in consumption opportunities and evaluate their implications for the nature and formation of preferences. We study the tariff experiment conducted by South Central Bell where local telephone measured tariffs were introduced for the...
Persistent link: https://www.econbiz.de/10005498107
We introduce learning into a Hotelling model of a non-renewable resource market. By combining learning and scarcity we … add significantly to the dynamics implied by learning and substantially enhance the volatility of commodity prices. In our … learning model we show how a self confirming equilibrium exists but is not constant over time. As scarcity increases the SCE …
Persistent link: https://www.econbiz.de/10004973966