Stability, chaos and multiple attractors: A single agent makes a difference

Arbeitspapier

This paper provides an example in which a slight behavioral heterogeneity may fundamentally change the qualitative properties of a nonlinear cobweb market with a quadratic cost function and an isoelastic demand function. We consider two types of producers; adaptive and naive. In a market of naive agents a single adaptive agent stabilizes the otherwise exploding market. In a market of adaptive agents a single naive agent may destabilize the market; without him there exists at most one periodic attractor in the market but with him there may appear many coexisting periodic attractors of arbitrarily large periods.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionsbeiträge ; No. 110

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Theory ; Business Fluctuations; Cycles ; Optimization Techniques; Programming Models; Dynamic Analysis
• Subject: 2-D Nonlinear cobweb model ; Behavioral heterogeneity ; Chaos ; Homoclinic bifurcations ; Coexisting periodic attractors ; Cobweb ; Erwartungstheorie ; Chaostheorie ; Theorie ; Nichtlineare dynamische Systeme

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Onozaki, Tamotsu ; Sieg, Gernot ; Yokoo, Masanori
• Event: Veröffentlichung
• (who): Georg-August-Universität Göttingen, Volkswirtschaftliches Seminar
• (where): Göttingen
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/83179
• Last update: 20.09.2024, 8:22 AM CEST