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Recognizing that the economy is a complex system with boundedly rational interacting agents, the book presents a theory of behavioral rationality and heterogeneous expectations in complex economic systems and confronts the nonlinear dynamic models with empirical stylized facts and laboratory experiments. The complexity model-ing paradigm has been strongly(More)
a r t i c l e i n f o JEL classification: C72 D01 D43 L13 Keywords: Cournot–Bertrand model Product differentiation Stability Dynamics Oligopoly theory In this paper we consider a Cournot–Bertrand duopoly model with linear demand and cost functions and with product differentiation. We propose a dynamic framework for the study of the stability properties of(More)
The aim of this work is to study discontinuous one-dimensional maps in the case of slopes and offsets having opposite signs. Such models represent the dynamics of applied systems in several disciplines. We analyze in particular attracting cycles, their border collision bifurcations and the properties of the periodicity regions in the parameter space. The(More)
We develop a three-dimensional nonlinear dynamic model in which the stock markets of two countries are linked through the foreign exchange market. Connections are due to the trading activity of heterogeneous speculators. Using analytical and numerical tools, we seek to explore how the coupling of the markets may affect the emergence of bull and bear market(More)
In this paper we continue exploring a recently introduced financial market model in which boundedly rational agents follow technical and fundamental trading rules to determine their orders. Amongst other things, our model reveals that interactions between heterogeneous speculators can generate interesting boom-bust cycles. In addition, we provide an(More)
In most cases authors are permitted to post their version of the article (e.g. in Word or Tex form) to their personal website or institutional repository. Authors requiring further information regarding Elsevier's archiving and manuscript policies are encouraged to visit: Keywords: Discrete dynamical systems Lotka–Volterra Prey–predator Bifurcations(More)
In this paper we consider a continuous one-dimensional map, which is linear on one side of a generic kink point and hyperbolic on the other side. This kind of map is widely used in the applied context. Due to the simple expression of the two functions involved, in particular cases it is possible to determine analytically the border collision bifurcation(More)
In this work we consider the border collision bifurcations occurring in a one-dimensional piece-wise linear map with two discontinuity points. The map, motivated by an economic application, is written in a generic form and considered in the stable regime, with all slopes between zero and one. We prove that the period adding structures occur in maps with(More)