time separable preferences strongly improves empirical performance. Learning causes momentum and mean reversion of returns … restrict consideration to learning schemes that imply only small deviations from full rationality. The findings are robust to … the particular learning rule used and the value chosen for the single free parameter introduced by learning, provided …

expectations by Bayesian learning based on observations from their own lifetimes. In this model, the stock price exhibits … approximated by a representative-agent model with constant-gain learning, where the gain parameter is related to the survival rate. …