Tag Archives: Towards Complex Dynamics

Figure 1: Bifurcation Diagram I have presented a model of prices of production in which the the rate of profits differs among industries. Such persistent differential rates of profits may be maintained because of perceptions by investors of different levels of risk among industries. Or they may reflect the ability of firms to maintain barriers to entry in different industries. In the latter case, the model is one of oligopoly. This post is based on a specific numeric example for...

Figure 1: Bifurcation Diagram This post is a continuation of the analysis in this reswitching example. That post presents an example of reswitching in a model of the production of commodities by means of commodities. The example is one of an economy in which two commodities, iron and corn, are produced. Managers of firms know of two processes for producing iron and one process for producing corn. The definition of technology results in a choice between two techniques of production. The...