Chaos Models in Economics

Abstract

The paper discusses the main ideas of the chaostheory and presents mainly the importance of thenonlinearities in the mathematical models. Chaos and orderare apparently two opposite terms. The fact that in chaoscan be found a certain precise symmetry (Feigenbaumnumbers) is even more surprising. As an illustration of theubiquity of chaos, two (among many other) models arepresented here: the nonlinear feedback profit model andone model for the simulation of the exchange rate.

Keywords

• Chaos models
• Chaotic behavior
• Nonlinear models