Kent Osband's "Rationally Turbulent Expectations" Explores Bayesian Learning with Calm and Turbulent Phases

Kent Osband summarizes his research on "rational turbulence" in a new book, building on work previously linked by the blog. The key finding is that Bayesian learning, when accounting for even tiny doubts about the stability of an i.i.d. process, alternates between calm and turbulent phases with fast learning periods. The book is published affordably in color