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Section B

Complexity of discrete investment competition model based on heterogeneous participants

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Pages 492-498 | Received 01 Sep 2009, Accepted 20 Oct 2011, Published online: 09 Dec 2011
 

Abstract

A discrete nonlinear dynamics model has been established based on investment competition for heterogeneous financial institutions in this paper. The cost functions of financial institutions are different in the competitive investment. Theoretical analysis and numerical simulations of the system are investigated in detail. The results show that the dynamic system can undergo chaotic orbits. The stability control is realized by the method combining the feedback control with the parameter variation. The numerical simulation results show that the control method is effective. In practice, by utilizing the sensitivity to disturbance of the model, we can put a tiny perturbation on the chaotic system and induce large influence on investments in order to realize a desirable behaviour.

2010 AMS Subject Classifications:

Acknowledgements

This work was supported by the project of Hebei Federation of Social Science Circles (No. 201104017) and Research Fund for the Doctoral Program of Handan College (No. 2010029).

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