EconPapers    
Economics at your fingertips  
 

A laboratory experiment on the heuristic switching model

Mikhail Anufriev, Aleksei Chernulich and Jan Tuinstra

Journal of Economic Dynamics and Control, 2018, vol. 91, issue C, 21-42

Abstract: We present results from the first laboratory experiment on the seminal heuristic switching model introduced by Brock and Hommes (1997, 1998). Subjects choose between two alternatives, a sophisticated and stabilizing, but costly, heuristic, and a destabilizing, but cheap, heuristic, and are paid according to the performance of the chosen heuristic. Aggregate choices determine the evolution of a state variable and, consequently, the performance of both heuristics. Theoretically, an increase in the costs for the stabilizing heuristic generates instability and leads to endogenous fluctuations in both the state variable and the fraction of agents using that heuristic.

Keywords: Heuristic switching model; Heterogeneous agent models; Discrete choice; Experiments (search for similar items in EconPapers)
JEL-codes: C25 C91 D83 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165188918301209
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:91:y:2018:i:c:p:21-42

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-09-29
Handle: RePEc:eee:dyncon:v:91:y:2018:i:c:p:21-42