NONLINEAR OPTIMIZATION OF THE CHAOTIC MARKET DYNAMICS

PII
S042473880000616-6-1
DOI
10.31857/S0000616-6-1
Publication type
Article
Status
Published
Authors
Volume/ Edition
Volume / Issue №3
Pages
58-70
Abstract
In the framework of the theory of dynamic systems, the problem of stabilization of the chaoticbehavior of the goods market formed by competing firms is considered. The analysis isbased on the study of a fairly simple economic model of two firms operating inthe same market, which conduct an active and asymmetric investment strategy.In the parameter space of this model, the regions corresponding to its chaoticbehavior are found. It is shown that by small changes in the parameters responsible for investment efficiency, it becomes possible to suppress chaos and deduce the dynamics of bothswitching to a periodic mode of operation. As a result, the market situation stabilizes and both firms on average begin to make large profits. However, toget this result, it is sufficient that onlyone firm implements the described policy. Generalizations of the obtained conclusions are given for the case of a large numberof market participants. Elements of the mathematical theory of stabilization of the chaotic behavior of dynamical systems are presented.
Keywords
chaotic dynamics, market for goods, suppression of chaos, competition model
Date of publication
01.07.2010
Number of purchasers
2
Views
879

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