ABSTRACT
The strong connection can be used to explain not only learning successes but also learning failures. Any failure to reach an equilibrium can be explained as the result of an insufficiency in the quantity or quality of available information. Relying exclusively on an inductive learning theory is self-contradictory this is of critical importance for the recognition of a role for learning in the process of reaching an equilibrium or in the explanation for the absence of an equilibrium. Even if the market clears today, unless the individuals are satisfied that their respective maps have been correctly conjectured, market clearance does not imply an equilibrium. For the most part, the assumption that decision-makers form conjectures does not dramatically affect our concept of market equilibrium. Over the years there has been concern for providing microfoundations for equilibrium macroeconomic models particularly in terms of the adequacy of explanations of disequilibrium phenomena.
