Discrete time price adjustment processes may fail to converge and may exhibit periodic or even chaotic behavior. To avoid large price changes, a version of the discrete time tâtonnement process for reaching an equilibrium in a pure exchange economy based on a cautious updating of the prices has been proposed two decades ago. This modification leads to a one dimensional bimodal piecewise smooth map, for which we show analytically that degenerate bifurcations and border collision bifurcations play a fundamental role for the asymptotic behavior of the model.

Foroni, I., Avellone, A., & Panchuk, A. (2016). Sudden transition from equilibrium stability to chaotic dynamics in a cautious tâtonnement model. JOURNAL OF PHYSICS. CONFERENCE SERIES, 692(1), 012005 [10.1088/1742-6596/692/1/012005].

Sudden transition from equilibrium stability to chaotic dynamics in a cautious tâtonnement model

FORONI, ILARIA
Primo
;
AVELLONE, ALESSANDRO
Secondo
;
2016

Abstract

Discrete time price adjustment processes may fail to converge and may exhibit periodic or even chaotic behavior. To avoid large price changes, a version of the discrete time tâtonnement process for reaching an equilibrium in a pure exchange economy based on a cautious updating of the prices has been proposed two decades ago. This modification leads to a one dimensional bimodal piecewise smooth map, for which we show analytically that degenerate bifurcations and border collision bifurcations play a fundamental role for the asymptotic behavior of the model.
Articolo in rivista - Articolo scientifico
Discrete time tâtonnement process, border collision bifurcations
English
012005
Foroni, I., Avellone, A., & Panchuk, A. (2016). Sudden transition from equilibrium stability to chaotic dynamics in a cautious tâtonnement model. JOURNAL OF PHYSICS. CONFERENCE SERIES, 692(1), 012005 [10.1088/1742-6596/692/1/012005].
Foroni, I; Avellone, A; Panchuk, A
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/141537
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