This paper attempts to identify some of the basic reasons why adaptive learning may or may not lead to stability and convergence to self-fulfilling expectations. It is shown that, if agents are somewhat uncertain about the local stability of the system, the learning dynamics is locally divergent. On the other hand, if agents are fairly sure of the local stability of the system, one may indeed get local stability. This 'uncertainty principle' does show up in a wide variety of contexts.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Article provided by Econometric Society in its journal Econometrica.
Volume (Year): 66 (1998) Issue (Month): 4 (July) Pages: 741-782 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
Other versions of this item:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.) This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.