Convergence to Rational Expectations in a Stationary Linear Game

S-Tier
Journal: Review of Economic Studies
Year: 1992
Volume: 59
Issue: 1
Pages: 109-123

Authors (1)

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper describes several learning processes which converge, with probability one, to the rational expectations (Bayesian-Nash) equilibrium of a stationary linear game. The learning processes include a test for convergence to equilibrium, and a method for changing the parameters of the process when non-convergence is indicated. This self-stabilization property eliminates the need to impose stability conditions on the economic environment. Convergence to equilibrium is proved for two types of self-stabilizing learning mechanisms: a centralized forecasting mechanism and a decentralized strategy adjustment process.

Technical Details

RePEc Handle
repec:oup:restud:v:59:y:1992:i:1:p:109-123.
Journal Field
General
Author Count
1
Added to Database
2026-01-25