Steady coexistence of the subjects of the market representing the private and state capital

TL;DR

This paper investigates how different ownership models in markets, especially private capital, influence market stability and crises, revealing nonlinear dynamics that can lead to periodic economic downturns.

Contribution

It introduces a nonlinear model of market behavior with private capital, explaining the emergence of economic crises through a subharmonic cascade scenario.

Findings

Market behavior with private capital follows a nonlinear pattern.

Economic crises may result from subharmonic cascade dynamics.

Market coexistence of private and state capital is sustainable under certain conditions.

Abstract

The sustainability conditions for the market participants with a different ownership model were also determined. It was revealed, that the nonlinear form of the equations describing the market behavior with the prevailing private capital, predetermines the development of such a market according to the subharmonic cascade scenario. The latter is presumably the reason of the periodically arising economic crises.