On the stability of a discrete dynamic producer-consumer model

In the paper Arrow’s dynamic market model and dynamic oligopoly models are combined as a discrete-time dynamic system, which can handle the imperfect knowledge of the producers and the consumers, their estimations and decisions aiming at the optimal production program. Beyond the full information case, also the static, adaptive and extrapolative cases are examined. Necessary and sufficient conditions are derived for the global asymptotical stability of the corresponding systems. Finally, the stability conditions are compared with each other.