Profitable inventory chaos in a macro disequilibrium dynamic model

Profitable inventory chaos in a macro disequilibrium dynamic model

0.00 Avg rating0 Votes
Article ID: iaor200953
Country: Germany
Volume: 9
Issue: 1/2
Start Page Number: 51
End Page Number: 70
Publication Date: Jul 2001
Journal: Central European Journal of Operations Research
Authors:
Abstract:

This study discusses a possibility that chaotic fluctuations might be preferable to a steady state. For this purpose, it uses a simple macro disequilibrium model in which inventory can be chaotically fluctuated. In such a model, the profit of an inventory-holding firm fluctuates accordingly. This raises the question of its average profit in the long-run. This study analytically and numerically demonstrates that the long-run average profit of a chaotic trajectory can be greater than the profit resulting in the stationary state.

Reviews

Required fields are marked *. Your email address will not be published.