F. Antoine Dedewanou, SPPA Adjunct Professor
Edda Claus (Wilfrid Laurier University) and SPPA Adjunct Research Professor F. Antoine Dedewanou examine the importance of perceptions and beliefs on decision-making in their paper Expectations, Beliefs, and Perceptions in the Modern Economy: An Overview, published as a Special Issue Article in the Journal of Economic Surveys, January 2024. https://doi.org/10.1111/joes.12610
Abstract
Expectations matter in dynamic models where decisions in one period have implications for outcomes in subsequent periods. Rational expectations were once the dominant assumption but its popularity is waning. Human decision-making deviates from rationality suggesting important influences of perceptions and beliefs on decision-making. The articles in this special issue provide up-to-date reviews of the importance of expectations, beliefs, and perceptions including the role of social media in shaping them.