Cars Hommes - How Expectations Interact to Create Bubbles

The video discusses the HEX FIX project, focusing on heterogeneous expectations in economics. It explains the use of heuristics in forecasting, supported by laboratory experiments. The video explores feedback systems, showing how negative feedback leads to stability, while positive feedback causes oscillations. Real-world applications, such as the dot-com bubble, are analyzed. The speaker shares their journey from mathematics to complexity economics, highlighting the importance of nonlinear dynamics in understanding economic behavior.

What findings were observed regarding the behavior of individuals in positive feedback environments?

How did the speaker transition from mathematics to economics?

What implications does the speaker suggest about the historical focus on stability in economics?