@techreport{5d660539e89b47e19b67c82b07cbf854,
title = "Alpha-consistent expectations equilibria",
abstract = "We modify the concept of consistent expectations equilibria introduced in Hommes and Sorger (1998) in two ways: (i) the consistency condition requires that the probability that the agents reject their perceived law of motion in any period does not exceed a given level and (ii) there may exist exogenous stochastic shocks. The concept is illustrated by two examples using a linear economic system. In one of the examples consistency implies rational expectations, in the other example it does not.",
author = "{Crespo Cuaresma}, Jesus and Gerhard Sorger",
year = "1999",
language = "English",
series = "Working Papers SFB {"}Adaptive Information Systems and Modelling in Economics and Management Science{"}",
publisher = "SFB Adaptive Information Systems and Modelling in Economics and Management Science, WU Vienna University of Economics and Business",
number = "33",
edition = "May 1999",
type = "WorkingPaper",
institution = "SFB Adaptive Information Systems and Modelling in Economics and Management Science, WU Vienna University of Economics and Business",
}