IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v41y1989i2p339-55.html
   My bibliography  Save this article

Expecting and Affecting

Author

Listed:
  • Bacharach, Michael

Abstract

In a very common type of economic model, agents choose their actions on the basis of their expectations of economic variables which, on the other hand, their actions collectively determine. The author shows that such models cannot legitimately be closed by imposing rational expectations. This is because if the agents are epistemically rational then, if they come to know the model, it is thereby changed. The outcome is now given by the solution, if any, of a game that rational agents are obliged to play. One implication is that a common picture of competition is incompatible with optimizing behavior. Copyright 1989 by Royal Economic Society.

Suggested Citation

  • Bacharach, Michael, 1989. "Expecting and Affecting," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 339-355, April.
    • Handle: RePEc:oup:oxecpp:v:41:y:1989:i:2:p:339-55
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0030-7653%28198904%292%3A41%3A2%3C339%3AEAA%3E2.0.CO%3B2-H&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lawrence A. Boland & Irene M. Gordon, 1992. "Criticizing positive accounting theory," Contemporary Accounting Research, John Wiley & Sons, vol. 9(1), pages 142-170, September.
    2. Richard Arena & Lauren Larrouy, 2015. "The Role of Psychology in Austrian Economics and Game Theory: Subjectivity and Coordination," GREDEG Working Papers 2015-15, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:41:y:1989:i:2:p:339-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.