Author: Leonid A. Serkov, Cand. Sc. (Physics & Maths), Associate-Prof., Head of Applied Information Science Dept.

Abstract: Various mechanisms for the formation of expectations of economic agents are considered. The formation of expectations based on adaptive learning is considered as one of the mechanisms of continual self-organization of expectations of economic agents at microeconomic level. Self-development of this process determines the evolution of the economic system. Within the neoclassical model this self-development is studied as a process of convergence of expectations with limited rationality to the equilibrium of rational expectations. It is shown that the key factor influencing the convergence is price flexibility.

Key words: self-organization; self-development; adaptive expectations; rational expectations; adaptive learning.