Equilibrium Price Bifurcation in WALRAS Price Formation Model with Delays
Abstract
The author investigates bifurcation of equilibrium price in price formation model of Walras type with delays, finds the stability limits for equilibrium price and gives their economic interpretation. The Hopf's bifurcation theorem for the class of differential equations with delay is proved. It is shown that in the case of nonessential commodity market a periodic orbit emerges or dies after loss of stability. The results of the investigation allow using this model as a block of a macroeconomic model for describing endogenous crises inception.
