The classical cobweb theorem is extended to include production lags and price forecasts. Price forecasting based on a … long lags lead to cycles of constant amplitude. The classical cobweb requires elasticity of demand to be greater than that …

We study a cobweb-type commodity market characterised by a strictly monotone demand and supply, in which n firms …

.st-and.ac.uk/cdma CDMA07/06 Stability and Cycles in a Cobweb Model with Heterogeneous Expectations Laurence Lasselle * University … Published in Macroeconomic Dynamics ABSTRACT We investigate the dynamics of a cobweb model with heterogeneous beliefs … bifurcation when the steady state is unstable. JEL Codes: C62, D84, E30. Keywords: Bounded rationality, Cobweb model, Flip …

deregulating prices in Cobweb-like set- tings. As in Cobweb-models, producers must commit inputs in face of uncertainty. Here … setting thus resembles the one that dominates the large literature on cobwebs [16]. The standard cobweb story, couched in … terms of adaptive price expectations, is framed here, in the form of adaptive inputs. Also the received cobweb story will …