Computer simulations of dynamical systems contain discretizations, where finite machine arithmetic replaces continuum state space. For chaotic dynamical systems, the main features of this discretization are stochastically related to the parameters both, of the underlying continuous system and of...

We introduce a probabilistic framework for hysteresis, a ubiquitous phenomenon in economic situations involving sunk costs. The framework is applied to a simple model of a firm's market entry/exit decisions. We study the influence of sunk cost size, width of the hysteretic loop, and of...

A class of heterogeneous agent models is investigated where investors switch trading position whenever their motivation to do so exceeds some critical threshold. These motivations can be psychological in nature or reflect behaviour suggested by the efficient market hypothesis (EMH). By...