Working Paper No. 145

Irregular Fluctuations in Competitive Markets with Production Lags

Working Paper
Reference
Day, Richard H. and Kenneth A. Hansson (1985). “Irregular Fluctuations in Competitive Markets with Production Lags”. IFN Working Paper No. 145. Stockholm: Research Institute of Industrial Economics (IFN).

Authors
Richard H. Day, Kenneth A. Hansson

This paper shows how changing patterns of change and irregular or chaotic fluctuations arise in deterministic, competitive markets with production lags using (1) the standard cobweb model with a backward bending supply function and (2) the Robertson-Williams cobweb model with financially constrained supply.