Learning and coordination (24/03)

Readings 

1. Basics

2. Cascades, Herds and Delays

3.Coordination of expectations

4.Exercises

  • Problem Set 1
    • Nyarko, Y (1991). " Learning in Mis-specified Models and the Possibility of Cycles," Journal of Economic Theory, 55, 416-427.

5. Coordination with payoff complementarities

  • Veldkamp, Laura (2005}. "Slow Boom, Sudden Crash," Journal of Economic Theory, 124, 230-257.
  • Fajgelbaum, Pablo, Edouard Schaal and Mathieur Taschereau-Dumouchel (2017). "Uncertainty Traps," Quarterly Journal of Economics, 132(4), 1641-1692.
  • Chamley, Christophe (1999). "Coordinating Regime Switches," Quarterly Journal of Economics, 114(3), 869-905.  Illustration (simulation of the model)
  • Note on endogenous uncertainty
  • Shiller, Robert J.. (2017). "Narrative Economics," American economic Review, 107(4), 967-1004.