What is another word for rational expectations?

Pronunciation: [ɹˈaʃənə͡l ɛkspɪktˈe͡ɪʃənz] (IPA)

Rational expectations refer to a theory in economics that assumes individuals make economic decisions based on all available information, including past experiences and expectations of future events. Synonyms for rational expectations include the efficient markets hypothesis, which assumes that financial markets are always efficient and prices always reflect all available information. The adaptive expectations theory assumes that individuals' expectations are formed based on past experiences and trends. The subjective expectations theory emphasizes individual beliefs and predictions about future events, based on personal values and experiences. Finally, the rational actors model assumes that individuals always act in their best self-interest, based on rational calculations. Overall, these different models offer alternative perspectives and approaches to understanding the complex nature of economic decision-making behavior.

Synonyms for Rational expectations:

What are the hypernyms for Rational expectations?

A hypernym is a word with a broad meaning that encompasses more specific words called hyponyms.

Famous quotes with Rational expectations

  • Lucas attended a conference on rational expectations at the University of Minnesota in the spring of 1973. The day after the conference, I received a call from Pittsburgh.
    Thomas J. Sargent
  • The first and most optimistic response was complete rational expectations econometrics. A rational expectations equilibrium is a likelihood function. Maximize it.
    Thomas J. Sargent

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