Multiple equilibria and chaos in a discrete tâtonnement process

Kaizoji, Taisei (2010): Multiple equilibria and chaos in a discrete tâtonnement process. Published in: Journal of Economic Behavior and Organization , Vol. 76, (1 September 2010): pp. 597-599.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Multiple equilibria, Tâtonnement process; Nonlinear dynamics; Chaos
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B21 - Microeconomics; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C62 - Existence and Stability Conditions of Equilibrium

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