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Supply based on demand dynamical model

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  • Asaf Levi
  • Juan Sabuco
  • Miguel A. F. Sanjuan

Abstract

We propose and analyze numerically a simple dynamical model that describes the firm behaviors under uncertainty of demand forecast. Iterating this simple model and varying some parameters values we observe a wide variety of market dynamics such as equilibria, periodic and chaotic behaviors. Interestingly the model is also able to reproduce market collapses.

Suggested Citation

  • Asaf Levi & Juan Sabuco & Miguel A. F. Sanjuan, 2017. "Supply based on demand dynamical model," Papers 1701.07333, arXiv.org.
    • Handle: RePEc:arx:papers:1701.07333
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    Cited by:

    1. Bernard Hoekman & Dominique Njinkeu, 2017. "Integrating Africa: Some Trade Policy Research Priorities and Challenges," RSCAS Working Papers 2017/43, European University Institute.

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