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Choi, Michael - 2020

We develop a dynamic learning model to study money adoption. Agents own an asset that can potentially serve as money … distribution of dividends and based on the learning outcomes they coordinate to adopt the asset as money or to abandon it. We …-contingent asset prices. We study information disclosure, efficiency of equilibrium money adoption and heterogeneity in beliefs. We …

Persistent link: https://www.econbiz.de/10012830503

Learning, Monetary Policy and Asset Prices

Airaudo, Marco; Nisticò, Salvatore; Zanna, Luis-Felipe - LeBow College of Business, Drexel University - 2012

We assess the conditions under which an interest rate rule granting an explicit response to stock prices can shield the economy against endogenous aggregate instability in the form of fluctuations driven by self-fulfilling beliefs, and fundamental equilibria that are not learnable in the...

Persistent link: https://www.econbiz.de/10010992332

Learning, Monetary Policy and Asset Prices

Airaudo, Marco - 2015

We explore the stability properties of interest rate rules granting an explicit response to stock prices in a New-Keynesian DSGE model populated by Blanchard-Yaari non-Ricardian households. The constant turnover between long-time stock holders and asset-poor newcomers generates a financial...

Persistent link: https://www.econbiz.de/10013027619

Monetary policy, parameter uncertainty and optimal learning

Wieland, Volker - 1999

reunification. A policy that separates learning from control may induce a persistent upward bias in money growth and inflation, just …

Persistent link: https://www.econbiz.de/10010466014

Heterogeneous Beliefs and Learning in Forward Looking Economic Models

Barucci, Emilio - 2000

We study a class of forward looking economic models with heterogeneous agents in a bounded rationality setting. The agents employ the same recursive learning rule to update beliefs but are characterized by different memory parameters. The peculiarity of the learning mechanism is that the...

Persistent link: https://www.econbiz.de/10014173987

Selecting the best when selection is hard

Drugov, Mikhail; Meyer, Margaret A.; Möller, Marc - 2022

In dynamic promotion contests, where performance measurement is noisy and ordinal, selection can be improved by biasing later stages in favor of early leaders. Even in the worst-case scenario, where noise swamps ability differences in determining relative performance, optimal bias is i) strictly...

Persistent link: https://www.econbiz.de/10013461490

Tax policy and entrepreneurial entry with information asymmetry and learning

d'Andria, Diego - 2017

We study a market with entrepreneurial and workers entry where both entrepreneurs' abilities and workers' qualities are private information. We develop an Agent-Based Computable model to mimic the mechanisms described in a previous analytical model (Boadway and Sato 2011). Then, we introduce the...

Persistent link: https://www.econbiz.de/10012055370

Cycling and Categorical Learning in Decentralized Adverse Selection Economies

Jehiel, Philippe; Mohlin, Erik - 2021

We study learning in a decentralized pairwise adverse selection economy, where buyers have access to the quality of traded goods but not to the quality of non- traded goods. Buyers categorize ask prices in order to predict quality as a function of ask price. The categorization is endogenously...

Persistent link: https://www.econbiz.de/10013208902

Information updating and insurance dropout: Evidence from dental insurance

Grönqvist, Erik - 2004

Micro data from a dental insurance natural experiment is used to analyze why agents opt out of insurance. The purpose is to relate the dropout decision to new information on risk, acquired by the policy holder and the insurer. The results show that agents tend to leave the insurance when...

Persistent link: https://www.econbiz.de/10010281255

The Informational Role of Prices

Mirman, Leonard J.; Santugini, Marc - Institut d'Économie Appliquée, HEC Montréal (École … - 2008

We study the informational role of prices. To that end, we consider the framework of a dominant firm with a competitive fringe. When the competitive fringe is large enough, there exists a unique fully revealing equilibrium, in which the price conveys full information about the quality of the...

Persistent link: https://www.econbiz.de/10005489841