The possibility of sunspot equilibria and endogenous cycles due to self-fulfilling expectations are explored in a one-sector overlapping-generations model with credit market imperfection. It is shown that a strategic complementarity between agent’s optimal labor supply decisions may arise when the credit market is imperfect. Multiplicity of steady states and local indeterminacy of equilibrium c...

Abstract The self-fulfilling prophecy is a ubiquitous concept with large amount of research to date, characterised by disciplinary diversity and thus potential plurality in its narrative. A meta-narrative review was implemented analyse the narratives different areas. It identified 10 areas, 22 themes 7 subthemes where phenomenon adopted describe explain phenomena/events/outcomes. revealed proph...

Three studies show that negotiators consistently underestimate the size of the bargaining zone in distributive negotiations (the small-pie bias) and, by implication, overestimate the share of the surplus they claim (the large-slice bias). The authors explain the results by asymmetric disconfirmation: Negotiators with initial estimates of their counterpart's reservation price that are "inside" t...