Discrete Dynamics in Nature and Society
Volume 2007 (2007), Article ID 29207, 14 pages
doi:10.1155/2007/29207
Research Article

Complex Dynamics in a Nonlinear Cobweb Model for Real Estate Market

Junhai Ma and Lingling Mu

School of Management, Tianjin University, Tianjin 300072, China

Received 10 October 2006; Revised 1 April 2007; Accepted 2 July 2007

Copyright © 2007 Junhai Ma and Lingling Mu. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

We establish a nonlinear real estate model based on cobweb theory, where the demand function and supply function are quadratic. The stability conditions of the equilibrium are discussed. We demonstrate that as some parameters varied, the stability of Nash equilibrium is lost through period-doubling bifurcation. The chaotic features are justified numerically via computing maximal Lyapunov exponents and sensitive dependence on initial conditions. The delayed feedback control (DFC) method is applied to control the chaos of system.