Complex dynamics in a cobweb model with adaptive production adjustment

The cobweb, borrowing and financial crises

“…As 0 f q → , the map f tends to a form similar to that analyzed by Onozaki et al (2000), who assume naïve expectations but cautious adjustment to the output that maximizes expected profit. But what these studies ignore is whether the long-term behaviors implied by the models are consistent with the long-run financial viability of producers.…”

Hopf bifurcation and stability crossing curves in a cobweb model with heterogeneous producers and time delays

“…To this purpose, Chiarella [14] and Hommes [15,16] have studied the dynamics of prices with nonlinear supply and demand curves by using the adaptive expectations hypothesis [17], with respect to which prices are revised according to prediction errors of agents. Along the same line of research, Onozaki et al [18] has revisited the cobweb model by considering adaptive adjustments on the quantity produced instead of price expectations.…”

Detecting Chaos from Agricultural Product Price Time Series

“…If the price system is chaotic, then not only the chaos and nonlinear prediction methods should be used as the main prediction approach (for example, see [9][10][11]), but the price fluctuation can also be understood and interpreted by using chaos theory. Different from [12][13][14], where the authors used chaotic cobweb models to discuss price fluctuations, in this paper, we aim to find evidence whether chaos exists in price data, give the chaos criterion, and if so, prove that agricultural product prices can be predicted by chaotic methods.…”