This paper develops a unified analysis of the impacts production delays on aggregate price fluctuations in continuous-time cobweb-type model. We find that time inconsistency between demand and supply due to inherently generates an overshooting effect prices. Large give rise fluctuations, even with low intensity choice. also provide results consistent rational route randomness Brock Hommes (1997...

We establish a nonlinear real estate model based on cobweb theory, where the demand function and supply function are quadratic. The stability conditions of the equilibrium are discussed. We demonstrate that as some parameters varied, the stability of Nash equilibrium is lost through period-doubling bifurcation. The chaotic features are justified numerically via computing maximal Lyapunov expone...

This paper studies a class of models in which agents’ expectations influence the actual dynamics while the expectations themselves are the outcome of some recursive processes with bounded memory. Under the assumptions of heterogeneous expectations (or beliefs) and that the agents update their expectations by recursive Land general aL-processes, the dynamics of the resulting expectations and rec...