Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83179
Authors: 
Onozaki, Tamotsu
Sieg, Gernot
Yokoo, Masanori
Year of Publication: 
2001
Series/Report no.: 
Diskussionsbeiträge aus dem Volkswirtschaftlichen Seminar der Universität Göttingen 110
Abstract: 
This paper provides an example in which a slight behavioral heterogeneity may fundamentally change the qualitative properties of a nonlinear cobweb market with a quadratic cost function and an isoelastic demand function. We consider two types of producers; adaptive and naive. In a market of naive agents a single adaptive agent stabilizes the otherwise exploding market. In a market of adaptive agents a single naive agent may destabilize the market; without him there exists at most one periodic attractor in the market but with him there may appear many coexisting periodic attractors of arbitrarily large periods.
Subjects: 
2-D Nonlinear cobweb model
Behavioral heterogeneity
Chaos
Homoclinic bifurcations
Coexisting periodic attractors
JEL: 
D21
E32
C61
Document Type: 
Working Paper

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