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Multiple equilibria and chaos in a discrete tâtonnement process

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  • Kaizoji, Taisei

Abstract

The purpose of this note is to demonstrate a sufficient condition for a discrete tâtonnement process to lead to chaos in a general equilibrium model with multiple commodities. The result indicates that as the speed of price adjustment increases, the discrete tâtonnement process is complex in a general equilibrium economy in which there are multiple equilibria.

Suggested Citation

  • Kaizoji, Taisei, 2010. "Multiple equilibria and chaos in a discrete tâtonnement process," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 597-599, December.
    • Handle: RePEc:eee:jeborg:v:76:y:2010:i:3:p:597-599
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    Cited by:

    1. Cavalli, Fausto & Naimzada, Ahmad, 2015. "A tâtonnement process with fading memory, stabilization and optimal speed of convergence," Chaos, Solitons & Fractals, Elsevier, vol. 79(C), pages 116-129.

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    More about this item

    Keywords

    Multiple equilibria Tatonnement process Nonlinear dynamics Chaos;

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics

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