positive levels of search costs. Considering an explicit learning scheme the paper shows that convergence of prices to …

We present a decision theoretic framework in which agents are learning about market behavior and that provides … microfoundations for models of adaptive learning. Agents are 'internally rational', i.e., maximize discounted expected utility under … discounted sum of dividends. As a result, learning about price behavior affects market outcomes, while learning about the …

beliefs about price and dividend behavior to deviate slightly from rational expectations priors. Learning about stock price … system of beliefs and other model features. We depart from previous studies of asset prices under learning in that agents …

the help of econometric models. Agents use least squares learning to estimate two competing models of which one is … consistent with rational expectations once learning is complete. When past performance governs the choice of forecast model …

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 …

the help of econometric models. Agents use least squares learning to estimate two competing models of which one is … consistent with rational expectations once learning is complete. When past performance governs the choice of forecast model …

We present a decision theoretic framework with agents that are learning about the behavior of market determined … about equilibrium prices, so that learning about price behavior, as in Adam, Marcet and Nicolini (2008), is fully consistent …