We examine the connection between two stability concepts of rational expectations equilibria: expectational stability, based on the convergence of iterations of expectations, and strong rationality, based on uniqueness of the rationalizable solutions of an associated game with restrictions on...

This paper examines justifications of the rational expectations hypothesis that rely on the analysis of the agents' mental forecasting ("educing") activity which involves "forecasting the forecasts" of others etc. The corresponding eductive learning stability concept, based on the game...

The Two-Sided Perfect Matching model is generalised to an Imperfect Matching model with search frictions. A search model is proposed which is characterised by bilateral search and vertical heterogeneity and allows for a generally specified utility function. The fundamental result is that with...

In this paper I analyse the strategic interaction of decision makers and their advisers in a consultation process. I find that when agents are concerned about their reputation, consultation results in sub-optimal sharing of information; some decision makers may deliberately act unilaterally and...

This paper examines the problem of distilling conflicting interpersonal comparisons into a single set of interpersonal comparisons. The mapping that achieves this has a richer co-domain than all social choice problems (and a richer domain than most social choice problems). The set of mappings...

In this paper we show slow trust building in social relationships in a model of complete information. This model is in contrast to the asymmetric information settings in 'reputation' models of slow trust building. We look at a society of borrowers and lenders who interact over time; a borrower...