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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 learning rate is not vanishing in the limit. Differently from what is obtained … in the case of a vanishing learning step, i.e., the stability conditions in the heterogeneous agents case are those of …
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We report on experimental evidence rationalizing the use of heterogeneous agent models. We provide compelling evidence that subjects in laboratory experiments often behave in ways that depart from the rational choice ideal. Further, these subjects' heuristic approaches often differ from one...
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