We analyze a simple model based on the cobweb demand–supply framework with costly innovators and free imitators and study the endogenous dynamics of price and firms’ fractions in a homogeneous good market. The evolutionary selection between technologies depends on a performance measure in which a memory parameter is introduced. The resulting dynamics is then described by a two-dimensional map. In addition to the locally stabilizing effect due to the presence of memory, we show the existence of a double stability threshold which entails for different dynamic scenarios occurring when the memory parameter takes extreme values (i.e. when consideration of the last profit realization prevails or it is too much neglected). The eventuality of different coexisting attractors as well as the structure of the basins of attraction that characterizes the path dependence property of the model with memory is shown. In particular, through global analysis we also illustrate particular bifurcations sequences that may increase the complexity of the related basins of attraction.

Agliari, A., Naimzada, A., Pecora, N. (2017). Dynamic effects of memory in a cobweb model with competing technologies. PHYSICA. A, 468, 340-350 [10.1016/j.physa.2016.10.090].

Dynamic effects of memory in a cobweb model with competing technologies

NAIMZADA, AHMAD KABIR;
2017

Abstract

We analyze a simple model based on the cobweb demand–supply framework with costly innovators and free imitators and study the endogenous dynamics of price and firms’ fractions in a homogeneous good market. The evolutionary selection between technologies depends on a performance measure in which a memory parameter is introduced. The resulting dynamics is then described by a two-dimensional map. In addition to the locally stabilizing effect due to the presence of memory, we show the existence of a double stability threshold which entails for different dynamic scenarios occurring when the memory parameter takes extreme values (i.e. when consideration of the last profit realization prevails or it is too much neglected). The eventuality of different coexisting attractors as well as the structure of the basins of attraction that characterizes the path dependence property of the model with memory is shown. In particular, through global analysis we also illustrate particular bifurcations sequences that may increase the complexity of the related basins of attraction.
Articolo in rivista - Articolo scientifico
Memory, Heterogeneousagents, Attractors coexistence, Stability, Competingtechnologies
English
340
350
11
Agliari, A., Naimzada, A., Pecora, N. (2017). Dynamic effects of memory in a cobweb model with competing technologies. PHYSICA. A, 468, 340-350 [10.1016/j.physa.2016.10.090].
Agliari, A; Naimzada, A; Pecora, N
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/135233
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