Production delays, technology choice and cyclical cobweb dynamics

Arbeitspapier

We develop a cobweb model in which firms, facing a two-period production delay, have access to a flexible (costly) and an inflexible (cheap) production technology. Moreover, firms select between production technologies depending on theirevolutionary fitness, measured in terms of past realized profits. The dynamics of our cobweb model is driven by a four-dimensional nonlinear map. We analytically show that its unique steady state may become unstable due to a Neimark-Sacker bifurcation, a scenario that gives rise to cyclical price dynamics, as observed in actual commodity markets. Simulations furthermore reveal that our cobweb model may also produce chaotic motion.

Angaben zum Objekt

• Sprache: Englisch
• ISBN: 978-3-943153-95-8

Verweise und Beziehungen

• Erschienen in: Series: BERG Working Paper Series ; No. 174

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Business Fluctuations; Cycles ; Agriculture: Aggregate Supply and Demand Analysis; Prices
• Thema: Cobweb models ; production technology ; cyclical price dynamics ; bounded rationality and learning ; stability and bifurcation analysis ; chaos

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dieci, Roberto ; Mignot, Sarah ; Westerhoff, Frank H.
• Ereignis: Veröffentlichung
• (wer): Bamberg University, Bamberg Economic Research Group (BERG)
• (wo): Bamberg
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/249150
• Letzte Aktualisierung: 20.09.2024, 08:21 MESZ