Adaptive Expectations Theory

The video discusses how people adjust their expectations for the future based on recent past events or real-time data, closely related to the rational expectation theory. It explains the three-factor process of identifying available information, past experiences, and applying human reasoning. The adaptive expectation hypothesis expands on this by including immediate history or real-time data, affecting behavior in organizations.

In what way does real-time data influence our expectations of future occurrences?

How can the adaptive expectation hypothesis affect behavior within an organization?