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Bubbling phenomenon in a discrete economic model for the interaction of demand and supply

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  • Yang, Xiaozhong
  • Peng, Mingshu
  • Hu, Jiping
  • Jiang, Xiaoxia

Abstract

In this paper, we study rich dynamics of a nonlinear economic model. Chaotic and bubbling phenomena are shown by numerical simulation, which clearly parallels with phenomena from technology bubbling during 1999-2000, or economic bubbling such as in the global industry of real state/stock market/production (oil) market since 2006.

Suggested Citation

  • Yang, Xiaozhong & Peng, Mingshu & Hu, Jiping & Jiang, Xiaoxia, 2009. "Bubbling phenomenon in a discrete economic model for the interaction of demand and supply," Chaos, Solitons & Fractals, Elsevier, vol. 42(3), pages 1428-1438.
    • Handle: RePEc:eee:chsofr:v:42:y:2009:i:3:p:1428-1438
    DOI: 10.1016/j.chaos.2009.03.058
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    References listed on IDEAS

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    6. Cars Hommes & Joep Sonnemans & Jan Tuinstra & Henk van de Velden, 2005. "Coordination of Expectations in Asset Pricing Experiments," The Review of Financial Studies, Society for Financial Studies, vol. 18(3), pages 955-980.
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    8. Smith, Vernon L & Suchanek, Gerry L & Williams, Arlington W, 1988. "Bubbles, Crashes, and Endogenous Expectations in Experimental Spot Asset Markets," Econometrica, Econometric Society, vol. 56(5), pages 1119-1151, September.
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