@article{jbms2013111,
author={Jablanovic, Vesna D.},
title={The Chaotic Monopoly Profit Growth Model and a Pigouvian Tax},
journal={Journal of Business and Management Sciences},
volume={1},
number={1},
pages={1--3},
year={2013},
url={http://pubs.sciepub.com/jbms/1/1/1},
abstract={Deterministic chaos refers to irregular or chaotic motion that is generated by nonlinear systems. The chaotic behavior is not to quantum-mechanical-like uncertainty. Chaos theory is used to prove that erratic and chaotic fluctuations can indeed arise in completely deterministic models. Chaotic systems exhibit a sensitive dependence on initial conditions. Seemingly insignificant changes in the initial conditions produce large differences in outcomes. The basic aim of this paper is to construct a relatively simple chaotic growth model of the monopoly price that is capable of generating stable equilibria, cycles, or chaos. A key hypothesis of this work is based on the idea that the coefficient ¦Ì =f (n ¨C b ¨C d ) plays a crucial role in explaining local stability of the monopoly profit, where, b ¨C the coefficient of the total cost function of the monopoly firm, n - the coefficient of the inverse demand function, d - the Pigovian tax rate.},
doi={10.12691/jbms-1-1-1}
publisher={Science and Education Publishing}
}