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Adaptive versus eductive learning: Theory and evidence
Affiliation:1. Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332, Singapore;2. Department of Economics, University of California, Irvine, CA 92697 USA;1. Jiangsu Key Lab of Spectral Imaging & Intelligence Sense (SIIS), Nanjing University of Science and Technology, Nanjing 210094, China;2. Science & Technology on Low-light-level Night Vision Laboratory, Xi’an 710005, China;3. Key Laboratory of Intelligent Perception and Systems for High-Dimensional Information of Ministry of Education, Nanjing University of Science and Technology, Nanjing, 210094, China;1. Department of Economics, University of Kentucky, Lexington, KY 40506, USA;2. Department of Economics, Michigan State University, East Lansing, MI 48824, USA;1. Dipartimento di Economia, Management e Diritto d’impresa, Università degli Studi di Bari, Aldo Moro, Italy;2. Departamento de Economía, Universidad Jaume I, Castellón, Spain
Abstract:Adaptive and eductive learning are two widely used ways of modeling the process by which agents learn a rational expectation equilibrium (REE). In this paper we report an experiment where we exploit differences in the conditions under which adaptive and eductive learning converge to REE so as to investigate which approach provides the better description of the learning behavior of human subjects. Our results suggest that the path by which the system converges appears to be a mixture of both adaptive and eductive learning model predictions.
Keywords:Rational expectations  Adaptive learning  Eductive learning  Experimental economics
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