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New non-equilibrium cobweb dynamical evolution model and its application

Author

Listed:
  • Fu, Min
  • Xia, Jun
  • Fan, Xinghua
  • Tian, Lixin
  • Wang, Minggang

Abstract

A new cobweb model is built under price adjustment situation. Its price correction function considers the dynamic effects of regulation. Accuracy and authenticity of the analysis are increases. The new model is applied to the analysis of stability of power's supply and demand. An empirical analysis is carried out to study electricity power market in Jiangsu province and Shandong province in China. Results from the new model are not identical with the old one. The new model performs better in showing the dynamic effects with price changes and the dynamic law system. Furthermore, the stability for the new cobweb model without considering external influences is also considered. The study shows the stability of new model by numerical analysis. Probability of stability is given.

Suggested Citation

  • Fu, Min & Xia, Jun & Fan, Xinghua & Tian, Lixin & Wang, Minggang, 2015. "New non-equilibrium cobweb dynamical evolution model and its application," Economic Modelling, Elsevier, vol. 51(C), pages 544-550.
    • Handle: RePEc:eee:ecmode:v:51:y:2015:i:c:p:544-550
    DOI: 10.1016/j.econmod.2015.09.003
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    References listed on IDEAS

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    Cited by:

    1. Zaremba, Łukasz, 2018. "Cobweb theorem in relation to the fruit market," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2018(3).
    2. Ge Gao & Xinmin Liu & Huijun Sun & Jianjun Wu & Haiqing Liu & Wei (Walker) Wang & Zhen Wang & Tao Wang & Haoming Du, 2019. "Marginal Cost Pricing Analysis on Tradable Credits in Traffic Engineering," Mathematical Problems in Engineering, Hindawi, vol. 2019, pages 1-10, January.
    3. Chaudhry, Muhammad Imran & Miranda, Mario J., 2018. "Complex price dynamics in vertically linked cobweb markets," Economic Modelling, Elsevier, vol. 72(C), pages 363-378.
    4. Salahshour, Soheil & Ahmadian, Ali & Allahviranloo, Tofigh, 2021. "A new fractional dynamic cobweb model based on nonsingular kernel derivatives," Chaos, Solitons & Fractals, Elsevier, vol. 145(C).

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