### Citations

854 | Noise trader risk in financial markets - DeLong, Shleifer, et al. - 1990 |

498 | Positive feedback investment strategies and destabilizing rational speculation - DeLong, Shleifer, et al. - 1990 |

343 | Speculative Investor Behavior in a Stock Market with Heterogeneous Expectations,” Quarterly - Harrison, Kreps - 1978 |

272 | Curvature of the Probability Weighting Function
- Wu, Gonzalez
- 1996
(Show Context)
Citation Context ...states together, some agents overweight the likelihood of small probability events, as in prospect theory. Standard weighting functions used in the prospect theory literature (see, e.g., Prelec 1998, =-=Gonzalez and Wu 1999-=-) have the property that, relative to the true probabilities, weighted probabilities grow large as the probability vanishes. By increasing the weight placed on other states when forming price forecast... |

272 |
The probability weighting function
- Prelec
- 1998
(Show Context)
Citation Context ...categorizing states together, some agents overweight the likelihood of small probability events, as in prospect theory. Standard weighting functions used in the prospect theory literature (see, e.g., =-=Prelec 1998-=-, Gonzalez and Wu 1999) have the property that, relative to the true probabilities, weighted probabilities grow large as the probability vanishes. By increasing the weight placed on other states when ... |

192 | Style investing - Barberis, Shleifer - 2003 |

172 | Social Values of Public Information - Morris, Shin - 2002 |

112 | Analogy-based expectation equilibrium
- Jehiel
- 2005
(Show Context)
Citation Context ...gain the effect remains). 2 Related Literature Our focus on categorization places this paper within the burgeoning literature on analogical and similarity-based reasoning (Gilboa and Schmeidler 1995, =-=Jehiel 2005-=-, Jehiel and Samet 2007, Mullainathan, Schwartzstein, and Shleifer 2008, Al-Najjar and Pai 2009). In particular, the starting point of our analysis is a characterization of steady-state outcomes that ... |

68 |
Rational Expectations and the Limits of Rationality: An Analysis of Heterogeneity
- Haltiwanger, Waldman
- 1985
(Show Context)
Citation Context ...orrect but consistent with the average across multiple periods. A number of earlier papers have highlighted the role of strategic complementarities in amplifying the effect of irrational agents (e.g. =-=Haltiwanger and Waldman 1985-=-, Haltiwanger andWaldman 1989, Fehr and Tyran 2005). Our main result is driven in part by this effect, which is compounded in our model because high frequencies strengthen strategic complementarities.... |

67 |
Case-based decision theory
- Gilboa, Schmeidler
- 1995
(Show Context)
Citation Context ...ant price result (although again the effect remains). 2 Related Literature Our focus on categorization places this paper within the burgeoning literature on analogical and similarity-based reasoning (=-=Gilboa and Schmeidler 1995-=-, Jehiel 2005, Jehiel and Samet 2007, Mullainathan, Schwartzstein, and Shleifer 2008, Al-Najjar and Pai 2009). In particular, the starting point of our analysis is a characterization of steady-state o... |

47 | Coarse Thinking and Persuasion - Mullainathan, Schwartzstein, et al. - 2008 |

38 | Beauty contests and iterated expectations in asset markets - Allen, Morris, et al. - 2006 |

33 | Limited rationality and strategic complements: The implications for rationality, Quarterly - Haltiwanger, Waldman - 1989 |

32 | Individual irrationality and aggregate outcomes
- Fehr, Tyran
- 2005
(Show Context)
Citation Context ...ods. A number of earlier papers have highlighted the role of strategic complementarities in amplifying the effect of irrational agents (e.g. Haltiwanger and Waldman 1985, Haltiwanger andWaldman 1989, =-=Fehr and Tyran 2005-=-). Our main result is driven in part by this effect, which is compounded in our model because high frequencies strengthen strategic complementarities. Our results can be understood in terms of higher ... |

21 | Markov Set-Chains - Hartfiel - 1998 |

9 | Wincoop (2008). Higher order expectations in asset pricing - Bacchetta, van |

8 |
Valuation equilibrium
- Jehiel, Samet
- 2007
(Show Context)
Citation Context ...ct remains). 2 Related Literature Our focus on categorization places this paper within the burgeoning literature on analogical and similarity-based reasoning (Gilboa and Schmeidler 1995, Jehiel 2005, =-=Jehiel and Samet 2007-=-, Mullainathan, Schwartzstein, and Shleifer 2008, Al-Najjar and Pai 2009). In particular, the starting point of our analysis is a characterization of steady-state outcomes that is closely related to t... |

7 | Bubbles and crashes with partially sophisticated investors. PSE Working Paper - Bianchi, Jehiel - 2010 |

6 | 2013, “An Approach to Asset-Pricing Under Incomplete and Diverse Perceptions”, Econometrica 81(4 - Eyster, Piccione |

2 |
Coarse decision making. Northwestern Working Paper
- Al-Najjar, Pai
- 2009
(Show Context)
Citation Context ...is paper within the burgeoning literature on analogical and similarity-based reasoning (Gilboa and Schmeidler 1995, Jehiel 2005, Jehiel and Samet 2007, Mullainathan, Schwartzstein, and Shleifer 2008, =-=Al-Najjar and Pai 2009-=-). In particular, the starting point of our analysis is a characterization of steady-state outcomes that is closely related to the 5 characterization in Steiner and Stewart (2008); although the settin... |

1 |
Iterated expectations and common priors.Games and economic Behavior 24
- Samet
- 1998
(Show Context)
Citation Context ...eauty contest. The role of high orders of expectations in our coarse pricing result is akin to their observation that private information has little influence on high orders of expectations (see also =-=Samet 1998-=-). 4 on incorrect beliefs about the process governing the evolution of states. These incorrect beliefs take a particular form: in addition to transitions that occur under the true process, agents beha... |