Instability in the Cobweb Model Under the BNN Dynamic

The cobweb model where firms choose between rational and naive forecasting strategies has a 2-cycle when the slope of supply is greater than the slope of demand for a number of different dynamics describing the evolution of strategy choices. This paper proves that the 2-cycle is exponentially unstable under the learning dynamic of Brown, von Neuman and Nash (1950). Issues arising in the analysis of piecewise smooth discrete time maps are discussed

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Year of publication:	2017
Authors:	Waters, George
Publisher:	[2017]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Cobweb
Description of contents:	Abstract [papers.ssrn.com]

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Extent:	1 Online-Ressource
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Journal of Mathematical Economics, Vol. 46, No. 2, 2010 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 29, 2009 erstellt Volltext nicht verfügbar
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; C73 - Stochastic and Dynamic Games ; D83 - Search, Learning, Information and Knowledge ; D84 - Expectations; Speculations
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012945829