Scandinavian Working Papers in Economics

SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

No 708: Analogy-based Expectations and the Partially Cursed Equilibrium

Topi Miettinen (topi.miettinen@hhs.se)
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Topi Miettinen: SITE, Postal: Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden

Abstract: Recent literature has questioned the existence of a learning foundation for the partially cursed equilibrium. This paper closes the gap by showing that a partially cursed equilibrium corresponds to a particular analogy-based expectation equilibrium.

Keywords: Analogy Expectations; Bounded Rationality; Curse; Learning

JEL-codes: C72; D82

8 pages, First version: August 15, 2008. Revised: December 12, 2008.

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