How to control a chaotic economy?
- Janusz Hołyst,
- Tilo Hagel,
- Günter Haag,
- Wolfgang Weidlich
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.
- Record ID
- Journal series
- Journal of Evolutionary Economics, ISSN 0936-9937, 1432-1386
- Issue year
- Keywords in English
- Chaotic economy, Control of chaos, Deterministic chaos, Economics general, Economic Theory, International Economics
- DOI:10.1007/BF01202371 Opening in a new tab
- http://link.springer.com/article/10.1007/BF01202371 Opening in a new tab
- Score (nominal)
- Score source
- Publication indicators
- = 36; = 79.0; = 42
- Citation count
- Uniform Resource Identifier
* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or PerishOpening in a new tab system.