Heterogeneous expectations, sunspot equilibria and their fragility

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In a simple, univariate forward looking model, we show how a class of sunspot equilibria can depend on the relative fraction of agents under heterogeneous expectations. We then investigate if such equilibrium could be brought about by endogenous predictor choice dynamics. © 2009 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)276-279
Number of pages3
JournalEconomics Letters
Issue number3
Publication statusPublished - Dec 2009


  • Endogenous predictor choice
  • Heterogeneous expectations
  • Sunspot equilibria

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