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Dynamic Model of Optimal Production Control in a Hysteretic Behaviour of Economic Agents

Author

Listed:
  • Alexander Mikhailovich Batkovskiy
  • Viktor Antonovich Nesterov
  • Olga Olegovna Reshetova
  • Elena Georgievna Semenova
  • Alena Vladimirovna Fomina

Abstract

The hysteresis nature of demand, depending on the price ratio and purchasing power, is well-known, but mathematical models that describe this relationship have not been developed so far.This article provides a dynamic model of optimal production within price hysteretic behaviour. Unlike the standard description methods, the proposed cobweb model provides for qualitative description of the solution to the equation at the slowly changing control. The article also describes the production model enable to determine the adjustment dynamics of product quantity from the manufacturer and the consumer. The solution is described by standard methods of optimal control theory.

Suggested Citation

  • Alexander Mikhailovich Batkovskiy & Viktor Antonovich Nesterov & Olga Olegovna Reshetova & Elena Georgievna Semenova & Alena Vladimirovna Fomina, 2017. "Dynamic Model of Optimal Production Control in a Hysteretic Behaviour of Economic Agents," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 355-379.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:2a:p:355-379
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    References listed on IDEAS

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    More about this item

    Keywords

    Hysteretic pricing model; Hysteretic price behaviour; Optimal manufacturing strategy; Demand function.;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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