ANZIAM J.
45 (2004), 547-555
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Memory, market stability and the nonlinear cobweb theorem
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Abstract
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Carlson has shown that if the predicted price in
the linear cobweb model is taken as the average
of all previous actual prices, then stability
results independently of parameter values
provided only that the demand--curve gradient is
less than that of the supply curve. This result
has subsequently been generalised by Manning and
by Holmes and Manning. We investigate the
robustness of their results.
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