Essays on expectation formation and learning

This thesis contributes to understanding how economic agents form expectations. The second chapter uses laboratory experiments to study the effect of environment on equilibrium selection and expectation formation. It shows that environment plays a crucial role in expectation formation. Using survey data, the third chapter explores the role consumers' perceptions about the current and past economic conditions play in their inflation expectations. This chapter documents that perceived current and past inflation is a key driver of consumer inflation expectations. The fourth chapter uses a household survey to investigate how providing inflation-related information influences inflation expectations. It shows that information provision effectively brings expectations closer to the central banks' targets.