A multiscale time model with piecewise constant argument for a boundedly rational monopolist

Fausto Cavalli, A. Naimzada

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

15 Citazioni (Scopus)

Abstract

We present a dynamic model for a boundedly rational monopolist who, in a partially known environment, follows a rule-of-thumb learning process. We assume that the production activity is continuously carried out and that the costly learning activity only occurs periodically at discrete time periods, so that the resulting dynamical model consists of a piecewise constant argument differential equation. Considering general demand, cost and agent’s reactivity functions, we show that the behavior of the differential model is governed by a nonlinear discrete difference equation. Differently from the classical model with smooth argument, unstable, complex dynamics can arise. The main novelty consists in showing that the occurrence of such dynamics is caused by the presence of multiple (discrete and continuous) time scales and depends on size of the time interval between two consecutive learning processes, in addition to the agent’s reactivity and the sensitivity of the marginal profit.
Lingua originaleEnglish
pagine (da-a)1-10
Numero di pagine10
RivistaJournal of Difference Equations and Applications
DOI
Stato di pubblicazionePubblicato - 2016

Keywords

  • Boundedly rational monopolist
  • bifurcation
  • multiscale
  • nonlinear difference equation
  • piecewise continuous differential equations
  • stability

Fingerprint Entra nei temi di ricerca di 'A multiscale time model with piecewise constant argument for a boundedly rational monopolist'. Insieme formano una fingerprint unica.

Cita questo