Play-hysteresis in supply as part of a market model - Research portal of Justus Liebig University Giessen:

Working paper/research report

Play-hysteresis in supply as part of a market model

Authors list: Göcke, M

Publication year: 2012

DOI Link: https://doi.org/10.22029/jlupub-5749

Title of series: Discussion papers / Zentrum für Internationale Entwicklungs- und Umweltforschung, Justus-Liebig-Universität (ZEU)

Number in series: 61

Abstract:

Consequences of path-dependent supply side on the market equilibrium are illustrated. Supply is only a subsystem of the entire market with its forcing variable (price) being endogenous from the perspective of the entire market. This results in feedbacks on the equilibrium of price and quantity if transient exogenous disturbances occur. Aggregate hysteresis is modelled by continuous dynamics showing similarities to 'mechanical play'. This contrast the standard firm level modelling of hysteresis resulting from discontinuous (activity/inactivity) switches. Play dynamics are captured in a simple linearized way, just by adding two parameters to a supply equation.

Authors/Editors

- Uni.-Prof. Dr. Matthias Ludwig Göcke

Citation Styles

Harvard Citation style: Göcke, M. (2012) Play-hysteresis in supply as part of a market model. (Discussion papers / Zentrum für Internationale Entwicklungs- und Umweltforschung, Justus-Liebig-Universität (ZEU), 61). Gießen: Zentrum für Internationale Entwicklungs- und Umweltforschung. https://doi.org/10.22029/jlupub-5749

APA Citation style: Göcke, M. (2012). Play-hysteresis in supply as part of a market model. (Discussion papers / Zentrum für Internationale Entwicklungs- und Umweltforschung, Justus-Liebig-Universität (ZEU), 61). Zentrum für Internationale Entwicklungs- und Umweltforschung. https://doi.org/10.22029/jlupub-5749