Hommes, C. (2011). The heterogeneous expectations hypothesis: Some evidence from the lab Journal of Economic Dynamics and Control, 35(1):1--24.
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Affiliated author
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Publication year2011
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JournalJournal of Economic Dynamics and Control
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.