Abstract:
We consider a Walras-type equilibrium model with a supply function specified by A. A. Shananin. In order to investigate a stability of market equilibrium under lack of information we develop a distributed model where price becomes discrete space variable. A bifurcation analysis allows us to examine asymptotic behavior of solutions to the model. We show that in a certain range of parameter values the system becomes spatially unstable and exhibits a qualitatively different bifurcation type.
Keywords:Walras equilibrium model, distributed dynamical system, bifurcation analysis, stability of asymptotic solutions, stability of market equilibrium.