Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099305 | Journal of Economic Dynamics and Control | 2010 | 23 Pages |
Abstract
In spite of the complexity of the environment, the boundedly rational policy maker learns to sustain a situation with a positive but fluctuating fraction of believers. This outcome is Pareto superior to the outcome predicted by standard theory. Interestingly enough, the actions taken by the policy maker undergo marked qualitative changes as a function of the prevailing heterogeneity among and learning characteristics of the private agents.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Jasmina Arifovic, Herbert Dawid, Christophe Deissenberg, Olena Kostyshyna,