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 language | English |
|---|---|
| Pages (from-to) | 101-115 |
| Number of pages | 15 |
| Journal | Journal of Economic Behavior and Organization |
| Volume | 41 |
| Issue number | 2 |
| Publication status | Published - Feb 2000 |
| Externally published | Yes |
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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 journal › Article
}
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
AN - SCOPUS:0013248533
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 -