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Fold-Fold Singularity in a Piecewise Smooth Mathematical Model Describing the Dynamics of a Stockless Market

Author

Listed:
  • Oscar Emilio Molina-Díaz

    (Faculty of Basic Sciences and Technologies, Universidad del Quindío, Armenia 630004, Colombia
    Department of Mathematics and Statistics, Universidad Nacional de Colombia, Manizales 170004, Colombia)

  • Gerard Olivar-Tost

    (Department of Natural Sciences and Technology, Universidad de Aysén, Coyhaique 5950000, Chile)

  • Deissy Milena Sotelo-Castelblanco

    (Department of Mathematics and Statistics, Universidad Nacional de Colombia, Manizales 170004, Colombia)

Abstract

Fold-fold singularities are critical points or singularities in piecewise smooth dynamical systems (PWS) where both the stability and the structure of the system change. These singularities are of great importance in the study of specific dynamics, such as those in markets, as they indicate significant transformations in their evolution, including sudden variability in prices or changes in the behavior of offers and demand. Despite the substantial increase in the use of mathematical and computational tools applied to market dynamics, the current literature does not thoroughly address the study of the existence of fold-fold singularities in piecewise smooth systems within this context. Therefore, due to the importance of markets as economic activities, this paper proves the existence of such a singularity in a mathematical model that describes the dynamics of a stockless market, which is represented by a system of ordinary differential equations defined with piecewise smooth functions.

Suggested Citation

  • Oscar Emilio Molina-Díaz & Gerard Olivar-Tost & Deissy Milena Sotelo-Castelblanco, 2024. "Fold-Fold Singularity in a Piecewise Smooth Mathematical Model Describing the Dynamics of a Stockless Market," Mathematics, MDPI, vol. 12(16), pages 1-18, August.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:16:p:2442-:d:1450973
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    References listed on IDEAS

    as
    1. Molina-Díaz, Oscar Emilio & Olivar-Tost, Gerard & Sotelo-Castelblanco, Deissy Milena, 2024. "Dynamics of a stockless market through piecewise smooth models," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 226(C), pages 246-269.
    2. Asano, Takao & Yokoo, Masanori, 2019. "Chaotic dynamics of a piecewise linear model of credit cycles," Journal of Mathematical Economics, Elsevier, vol. 80(C), pages 9-21.
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