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> The Cobweb Model

Mathematics for Economics and Finance Methods and Modelling

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Chapter 5: The Cobweb Model

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Chapter 5: The Cobweb Model

pp. 43-50

Authors

Martin Anthony
, London School of Economics and Political Science,
Norman Biggs
, London School of Economics and Political Science
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Extract

The cobweb model is introduced and analysed fully for the case of linear supply and demand, and conditions for stability are derived.

Keywords

  • cobweb model
  • stable cobweb
  • unstable cobweb

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