PARTIAL EQUILIBRIUM-ANALYSIS IN A NOISY CHAOTIC MARKET

Authors
HOMMES C VANEEKELEN A
Citation
C. Hommes et A. Vaneekelen, PARTIAL EQUILIBRIUM-ANALYSIS IN A NOISY CHAOTIC MARKET, Economics letters, 53(3), 1996, pp. 275-282
Citations number
14
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
53
Issue
3
Year of publication
1996
Pages
275 - 282
Database
ISI
SICI code
0165-1765(1996)53:3<275:PEIANC>2.0.ZU;2-Q
Abstract
We investigate the validity of partial equilibrium analysis in a nonli near chaotic market model subject to small noise. Despite the sensitiv ity to market parameters in a chaotic economy, partial analysis can st ill detect both qualitative and quantitive features of price fluctuati ons which are robust against small noise and market interdependencies.