Chaotic behavior in economic models
|Author:||Bc. Pavol Stanek|
|Year:||2008 - summer|
|Leaders:|| doc. RNDr. Miroslav Zelený Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This bachelor`s thesis concerns with the issue of modelling economic processes using difference equations of the first order. It investigates the occurrence of a possible complicated behaviour, generally known as chaos.
The first section explains the mathematical apparatus, which exactly defines the term chaotic behaviour. Statement that determines a simple sufficient condition for chaotic behaviour follows. Its proof reveals the emergence of chaos.
In the second section, there is constructed a modified cobweb model, which describes firm's volume of production in time. Specifically, it discusses the situation, when the firm has no information about the price in the current period. The firm has at its disposal only information about the price from the previous period. The results from the first section are demonstrated on this model.