ISSN:
1432-1386
Keywords:
Chaotic economy
;
Control of chaos
;
Deterministic chaos
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract An economic system which exhibits chaotic behaviour has been stabilized on various periodic orbits by use of the Ott-Grebogi-Yorke method. This procedure has been recently applied to controlling chaotic phenomena in physical, chemical and biological systems. We adopt this method successfully for Feichtinger's generic model of two competing firms with asymmetrical investment strategies. We show that the application of this control method to the particular economic process considered brings a substantial advantage: one can easily switch from a chaotic trajectory to a regular periodic orbit and simultaneously improve the system's economic properties. Numerical simulations are presented in order to illustrate the effectiveness of the whole procedure.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01202371
