Preferable disequilibrium in a nonlinear cobweb economy

This study demonstrates the possibility that chaotic fluctuations may be preferable to a competitive equilibrium. For this purpose, we use a linear cobweb model augmented by the lower and upper bounds for variations of output and construct densities of ergodically chaotic fluctuations. We demonstrate with the aid of numerical examples that the long-run average profit and utility obtained in perpetual disequilibrium can be greater than the profit and utility at equilibrium.