theory of adaptive expectations
Definition
Economic-behavior observation that people form their expectations of economic trends solely on the basis of what was the past magnitude and direction of those trends. If these expectations turn out to be wrong then, depending on the degree of the error, people revise (adapt) their future estimates accordingly. See also theory of rational expectations.
theory of adaptive expectations is in the Accounting & Auditing, Decision Making, Problem Solving, & Strategy, Economics, Politics, & Society and Planning & Scheduling subjects.
theory of adaptive expectations appears in the definition of the following term: adaptive expectations
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