The Periodicity of the Anticipative Discrete Demand-Supply Model

Abstract

This paper presents an analysis of the periodicity solutions to the discrete anticipative cobweb model. Dubois’ anticipative principle was applied in the modification of Kaldor’s cobweb model. Characteristic solutions are gained through the application of a simulation, which determines the cyclical behaviour of supply and demand. Z-transform was applied in the determination of the solutions. The interconnec­tion between the anticipative definition of the cobweb model and Hicks model is addressed