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endogenously influence whether learning occurs through its policy choices (policy experimentation), future political competition … unilaterally, but faces competition from a political opponent in the future. Both parties care about voters payoffs, but they have … different beliefs about how policy choices will map into future economic outcomes. We show that when the incumbent party can …
Persistent link: https://www.econbiz.de/10013051379
Persistent link: https://www.econbiz.de/10010492079
Using belief elicitation, the paper investigates the formation and the evolution of beliefs in a signalling game in … which a common prior on Sender's type is not induced. Beliefs are elicited about the type of the Sender and about the … strategies of the players. The experimental subjects often start with diffuse uniform beliefs and update them in view of …
Persistent link: https://www.econbiz.de/10009535526
endogenously influence whether learning occurs through its policy choices (policy experimentation), future political competition … unilaterally, but faces competition from a political opponent in the future. Both parties care about voters payoffs, but they have … different beliefs about how policy choices will map into future economic outcomes. We show that when the incumbent party can …
Persistent link: https://www.econbiz.de/10010398541
We study how subjects in an experiment use different forms of public information about their opponents' past behavior …
Persistent link: https://www.econbiz.de/10011437784
This survey discusses behavioral and experimental macroeconomics emphasizing a complex systems perspective. The economy consists of boundedly rational heterogeneous agents who do not fully understand their complex environment and use simple decision heuristics. Central to our survey is the...
Persistent link: https://www.econbiz.de/10011929804
This essay links some of my own work on expectations, learning and bounded rationality to the inspiring ideas of Jean …-Michel Grandmont. In particular, my work on consistent expectations and behavioral learning equilibria may be seen as formalizations of … JMG's ideas of self-fulfilling mistakes. Some of our learning-to-forecast laboratory experiments with human subjects have …
Persistent link: https://www.econbiz.de/10011590425
the prevalence of their own values and preferences when forming beliefs about others' values and preferences, depends on … the salience of own preferences. We manipulate salience by varying the order of elicitation of preferences and beliefs …
Persistent link: https://www.econbiz.de/10014233633
We provide an axiomatic approach to a belief formation process in an informational environment characterized by limited, heterogenous and differently precise information. For a list of previously observed cases an agent needs to express her belief by assigning probabilities to possible outcomes....
Persistent link: https://www.econbiz.de/10010356678
We analyze a two-player game of strategic experimentation with two-armed bandits. Each player has to decide in continuous time whether to use a safe arm with a known payoff or a risky arm whose likelihood of delivering payoffs is initially unknown. The quality of the risky arms is perfectly...
Persistent link: https://www.econbiz.de/10010364305