Centre for Development Economics
Department of Economics
Delhi School of Economics
ANNOUNCE A SEMINAR
“Intertemporal Expectations Coordination” (with Gabriel Desgranges)
by
Sayantan Ghoshal (University of Glasgow)
(Thursday,23 February 2023, 3:15 PM IST)
Venue: AMEX Room
Abstract:-
Starting from a situation where agents have heterogeneous expectations about future prices, we study whether coordination of expectations converges to a perfect foresight equilibrium or leads to different, albeit approximately self-fulfilling, outcomes. Our focus is on examining the interaction of expectations and preferences in (a) determining the degree of stability of a perfect foresight equilibrium, and (b) characterizing the conditions under which approximately self-fulfilling outcomes are different from perfect foresight equilibria.