Complex dynamics in a cobweb model with adaptive production adjustment

Tamotsu Onozaki, Gernot Sieg, Masanori Yokoo

Research output: Contribution to journalArticle

27 Citations (Scopus)

Abstract

Chaos occurs in a nonlinear cobweb model with normal demand and supply, naive expectations and adaptive production adjustment. The model differs from existing ones in that it includes adaptive production adjustment instead of adaptive expectations. The model exhibits observable chaos (strange attractors) as well as topological chaos (horseshoes) associated with homoclinic points. As numerical simulations show, the faster suppliers adjust their production and the more inelastic demand is, the more likely the market behaves chaotically.

Original languageEnglish
Pages (from-to)101-115
Number of pages15
JournalJournal of Economic Behavior and Organization
Volume41
Issue number2
Publication statusPublished - Feb 2000
Externally publishedYes

Fingerprint

Cobweb model
Complex dynamics
Chaos
Demand and supply
Suppliers
Adaptive expectations
Strange attractor
Numerical simulation

Keywords

  • Adaptive production adjustment
  • D21
  • E32
  • Homoclinic point
  • Nonlinear cobweb model
  • Observable chaos
  • Topological chaos

ASJC Scopus subject areas

  • Organizational Behavior and Human Resource Management
  • Economics and Econometrics

Cite this

Complex dynamics in a cobweb model with adaptive production adjustment. / Onozaki, Tamotsu; Sieg, Gernot; Yokoo, Masanori.

In: Journal of Economic Behavior and Organization, Vol. 41, No. 2, 02.2000, p. 101-115.

Research output: Contribution to journalArticle

@article{4b990192ec8143db9cee38de0efd3bcd,
title = "Complex dynamics in a cobweb model with adaptive production adjustment",
abstract = "Chaos occurs in a nonlinear cobweb model with normal demand and supply, naive expectations and adaptive production adjustment. The model differs from existing ones in that it includes adaptive production adjustment instead of adaptive expectations. The model exhibits observable chaos (strange attractors) as well as topological chaos (horseshoes) associated with homoclinic points. As numerical simulations show, the faster suppliers adjust their production and the more inelastic demand is, the more likely the market behaves chaotically.",
keywords = "Adaptive production adjustment, D21, E32, Homoclinic point, Nonlinear cobweb model, Observable chaos, Topological chaos",
author = "Tamotsu Onozaki and Gernot Sieg and Masanori Yokoo",
year = "2000",
month = "2",
language = "English",
volume = "41",
pages = "101--115",
journal = "Journal of Economic Behavior and Organization",
issn = "0167-2681",
publisher = "Elsevier",
number = "2",

}

TY - JOUR

T1 - Complex dynamics in a cobweb model with adaptive production adjustment

AU - Onozaki, Tamotsu

AU - Sieg, Gernot

AU - Yokoo, Masanori

PY - 2000/2

Y1 - 2000/2

N2 - Chaos occurs in a nonlinear cobweb model with normal demand and supply, naive expectations and adaptive production adjustment. The model differs from existing ones in that it includes adaptive production adjustment instead of adaptive expectations. The model exhibits observable chaos (strange attractors) as well as topological chaos (horseshoes) associated with homoclinic points. As numerical simulations show, the faster suppliers adjust their production and the more inelastic demand is, the more likely the market behaves chaotically.

AB - Chaos occurs in a nonlinear cobweb model with normal demand and supply, naive expectations and adaptive production adjustment. The model differs from existing ones in that it includes adaptive production adjustment instead of adaptive expectations. The model exhibits observable chaos (strange attractors) as well as topological chaos (horseshoes) associated with homoclinic points. As numerical simulations show, the faster suppliers adjust their production and the more inelastic demand is, the more likely the market behaves chaotically.

KW - Adaptive production adjustment

KW - D21

KW - E32

KW - Homoclinic point

KW - Nonlinear cobweb model

KW - Observable chaos

KW - Topological chaos

UR - http://www.scopus.com/inward/record.url?scp=0013248533&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0013248533&partnerID=8YFLogxK

M3 - Article

VL - 41

SP - 101

EP - 115

JO - Journal of Economic Behavior and Organization

JF - Journal of Economic Behavior and Organization

SN - 0167-2681

IS - 2

ER -