Memory, market stability and the nonlinear cobweb theorem

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2004

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Gaffney, J.
Pearce, C.

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Australia and New Zealand Industrial and Applied Mathematics (ANZIAM) Journal, 2004; 45:547-555

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J. M. Gaffney and C. E. M. Pearce

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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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© Australian Mathematical Society The document attached has been archived with permission from the publisher.

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