An auctioneer model of market adjustment is proposed which, unlike the standard formulation, has prices react to extrapolated (rather than prevailing) excess demands. If expectations are sufficiently sensitive to current rates of change, every regular market equilibrium is shown to be locally...

We study a setting with many countries; in each country there are firms that can sell in the domestic as well as foreign markets. Countries can sign bilateral free-trade agreements that lower import tariffs and thereby facilitate trade. We allow a country to sign any number of bilateral...

The authors study learning in organizations comprised of short-lived agents with heterogeneous beliefs. It is shown that the sequence of actions converges in probability to the set of ex-post optimal actions. Under some identifiability conditions, beliefs also converge in probability to point...