Impacts on Stability of Interdependencies Between Markets in a Cobweb Model
Paper in proceedings, 2015

We present a cobweb model of interdependent markets on both the sup- ply and demand sides and apply it to a food and bioenergy framework. The supply side is represented by an agent based model of global land use while the consumer side consists of interlinked demand functions. We find that the two kinds of inter- dependencies have opposing effects. Linking markets on the supply side transfers instabilities within the system and may cause price fluctuations in previously sta- ble markets. Market interdependency on the demand side, on the other hand, has a stabilizing effect.

Market interactions

Bioenergy

Stability

Cobweb model

Land-use competition

Price fluctuations

Author

Emma Jonson

Chalmers, Energy and Environment, Physical Resource Theory

Liv Lundberg

Chalmers, Energy and Environment, Physical Resource Theory

Kristian Lindgren

Chalmers, Energy and Environment, Physical Resource Theory

Lecture Notes in Economics and Mathematical Systems

0075-8442 (ISSN)

Vol. Volume 195--205-

Areas of Advance

Energy

Subject Categories

Economics

Other Mathematics

DOI

10.1007/978-3-319-09578-3__16

ISBN

978-3-319-09577-6

More information

Created

10/7/2017