Multiple equilibria and chaos in a discrete tâtonnement process

Kaizoji, Taisei (2010): Multiple equilibria and chaos in a discrete tâtonnement process.

Abstract

The purpose of this note is to demonstrate a sufficient condition for 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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Multiple equilibria, Tâtonnement process; Nonlinear dynamics; Chaos
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B21 - Microeconomics; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods

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