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Journal articles
Stability and cycles in a cobweb model with heterogeneous expectations
Abstract : We investigate the dynamics of a cobweb model with heterogeneous beliefs, generalizing the example of Brock and Hommes (1997). We examine situations where the agents form expectations by using either rational expectations, or a type of adaptive expectations with limited memory defined from the last two prices. We specify conditions that generate cycles. These conditions depend on a set of factors that includes the intensity of switching between beliefs and the adaption parameter. We show that both Flip bifurcation and Neimark-Sacker bifurcation can occur as primary bifurcation when the steady state is unstable.
Cited literature [19 references]
https://hal.univ-reunion.fr/hal-02155092
Contributor : Réunion Univ Connect in order to contact the contributor
Submitted on : Thursday, June 13, 2019 - 12:58:47 PM
Last modification on : Tuesday, October 19, 2021 - 5:56:07 PM
Contributor : Réunion Univ Connect in order to contact the contributor
Submitted on : Thursday, June 13, 2019 - 12:58:47 PM
Last modification on : Tuesday, October 19, 2021 - 5:56:07 PM
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