Multistability and path dependence in a
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Gian-Italo Bischi; Michael Kopel
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Article
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2003
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Elsevier Science
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English
β 421 KB
We introduce a dynamic market share attraction model where agents are boundedly rational. They follow a simple rule of thumb which is based on marginal profits to determine their actions over time. We show that multistability arises, i.e. several attractors coexist. In such a situation the selected