Adaptive expectations coordination in an economy with heterogeneous agents

In this paper, we study the problem of expectations coordination on the stationary state in a one-dimensional economy with heterogeneous agents. We consider a constant gain adaptive learning rule. We allow for heterogeneity of the fundamentals and of the constant gain parameters. We show that these two sources of heterogeneity may create difficulties to the process of coordination. (C) 2002 Elsevier Science B.V. All rights reserved.