TY - JOUR
T1 - Stability, chaos and multiple attractors
T2 - A single agent makes a difference
AU - Onozaki, Tamotsu
AU - Sieg, Gernot
AU - Yokoo, Masanori
N1 - Funding Information:
The authors would like to thank one of the editors of this journal, Cars Hommes, two anonymous referees for helpful comments. T. Onozaki acknowledges the financial support by the Japan Society for the Promotion of Science (Grant-in-Aid for Exploratory Research, 11873004, 1999). M. Yokoo acknowledges the financial support by the Japan Society for the Promotion of Science (Grant-in-Aid for Scientific Research C, 11630020, 1999).
PY - 2003/8
Y1 - 2003/8
N2 - This paper provides an example in which a slight behavioral heterogeneity may fundamentally change the dynamical properties of a nonlinear cobweb market with a quadratic cost function and an isoelastic demand function. We consider two types of producers; cautious adapters and naive optimizers. In a market of naive optimizers a single cautious adapter stabilizes the otherwise exploding market. In a market of cautious adapters a single naive optimizer may destabilize the market; without him there exists at most one periodic attractor in the market but with him there may appear many (and even infinitely many) coexisting periodic attractors.
AB - This paper provides an example in which a slight behavioral heterogeneity may fundamentally change the dynamical properties of a nonlinear cobweb market with a quadratic cost function and an isoelastic demand function. We consider two types of producers; cautious adapters and naive optimizers. In a market of naive optimizers a single cautious adapter stabilizes the otherwise exploding market. In a market of cautious adapters a single naive optimizer may destabilize the market; without him there exists at most one periodic attractor in the market but with him there may appear many (and even infinitely many) coexisting periodic attractors.
KW - 2-D nonlinear cobweb model
KW - Behavioral heterogeneity
KW - Chaos
KW - Coexisting periodic attractors
KW - Homoclinic bifurcations
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U2 - 10.1016/S0165-1889(02)00090-8
DO - 10.1016/S0165-1889(02)00090-8
M3 - Article
AN - SCOPUS:0037411909
SN - 0165-1889
VL - 27
SP - 1917
EP - 1938
JO - Journal of Economic Dynamics and Control
JF - Journal of Economic Dynamics and Control
IS - 10
ER -