Posts Tagged ‘rational expectations’

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    Irrational and Rational Expectations

    Dec 12, 11 • 290 Views • No Comments

    Sometimes, expectations can determine outcomes. In articles on the placebo effect, Wired and the New Yorker tell us that people tend to believe that green pills are best at diminishing anxiety, brand names are better, and medication taken 4 times daily will...  [read more]

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    Irrational Expectations

    Jun 13, 11 • 284 Views • No Comments

    Let’s say that you purchased the house in which you now live during 1997 for the average national price, $171,900. With housing prices steadily rising, by 2006, a neighbor’s house would have sold for as much as $317,000. In the NY Times, Nobel...  [read more]