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The heterogeneous expectations hypothesis: Some evidence from the lab

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  • Hommes, Cars

Abstract

This paper surveys learning-to-forecast experiments (LtFEs) with human subjects to test theories of expectations and learning. Subjects must repeatedly forecast a market price, whose realization is an aggregation of individual expectations. Emphasis is given to how individual forecasting rules interact at the micro-level and which structure they cocreate at the aggregate, macro-level. In particular, we focus on the question wether the evidence from laboratory experiments is consistent with heterogeneous expectations.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 35 (2011)
Issue (Month): 1 (January)
Pages: 1-24

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Handle: RePEc:eee:dyncon:v:35:y:2011:i:1:p:1-24

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Web page: http://www.elsevier.com/locate/jedc

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Keywords: Heterogeneous expectations Bounded rationality Learning Heuristics switching;

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