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Statistical dynamics in a chaotic Cournot model with complementary goods [An article from: Journal of Economic Behavior and Organization]
Book Details
Author(s)A. Matsumoto, Y. Nonaka
PublisherElsevier
ISBN / ASINB000PC0HM4
ISBN-13978B000PC0HM2
MarketplaceCanada 🇨🇦
Description
This digital document is a journal article from Journal of Economic Behavior and Organization, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
This study sheds light on statistical properties of chaotic economic dynamics. To this end, it builds a simple Cournot dynamic model with two firms in which reactions functions are non-linear and goods are complements. When non-linearities get strong enough, the output adjustment process generates complex dynamics involving chaos. It is analytically as well as numerically demonstrated that for both firms, a long-run average profit taken along a chaotic trajectory can be higher than a profit taken at a stationary point. This result implies that chaotic dynamics can be beneficial from the long-run point of view.
Description:
This study sheds light on statistical properties of chaotic economic dynamics. To this end, it builds a simple Cournot dynamic model with two firms in which reactions functions are non-linear and goods are complements. When non-linearities get strong enough, the output adjustment process generates complex dynamics involving chaos. It is analytically as well as numerically demonstrated that for both firms, a long-run average profit taken along a chaotic trajectory can be higher than a profit taken at a stationary point. This result implies that chaotic dynamics can be beneficial from the long-run point of view.
