Analysis of the Anticipative Cobweb Model Dynamics
نویسندگان
چکیده
The cobweb model of competitive market dynamics has been examined in the form of system dynamics model. The classical formulation of the cobweb demand-supply model has been transformed in the set of equations suitable for system dynamics modelling. The model has been expanded by the time parameter ∆t which enables the stability analysis of the model for the change in the ∆t. The structure of the model has been presented and key relationships in the model have been examined. The cyclical response of the system which is dependent on the demand∼supply parameters and eigenvalues of the characteristic equation has been numerically examined.
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