STATIONARY GLOBAL DYNAMICS OF LOCAL MARKETS WITH QUADRATIC SUPPLIES

The method of Lattice Dynamical System is used to establish a global model on an infinite chain of many local markets interacting each other through a diffusion of prices between them. This global model extends the Walrasian evolutionary cobweb model in an independent single local market to the global market evolution. We assume that each local market has linear decreasing demands and quadratic supplies with naive predictors, and investigate the stationary behaviors of global price dynamics and show that their dynamics are conjugate to those of Henon maps and hence can exhibit complicated behaviors such as period-doubling bifurcations, chaos, and homoclic orbits etc.