Adaptive stability with limited structural knowledge
Article Abstract:
The adaptive adjustment framework for attaining rational expectations equilibrium in the decision-making process is clarified. It is contended that when the adaptive adjustment process converges, it must be to a rational expectations equilibrium. However, the dynamic transition toward equilibrium is systematically adaptive in nature. The stabilizing dynamics of adaptive adjustment do not depend on agents' structural knowledge.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1992
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Adaptive behavior and coordination failure
Article Abstract:
An analysis of the relationship between coordination failure and adaptive behavior reveals that security is prioritized by players over consistency. This behavior diverged from a separatrix with players trapped at the lower region not being able to escape. The study uses both myopic best response dynamic and fictitious play dynamic and provides examples wherein coordination failure arises from small historical accidents.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1997
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Projectual vs. adaptive behavior: a comment on Heiner
Article Abstract:
Ronald A. Heiner's interpretation and model framework of the rational expectations concept in decision making processes is supported over Robert E. Lucas' adaptive adjustment rules. The projectual character of Heiner's model is regarded as far richer and more behaviorally sound than Lucas' norm of adaptive behavior and knowledge of the structural characteristics of the system.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1992
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