# Supply based on demand dynamical model

## TL;DR

This paper introduces a simple dynamical model for firm behavior under uncertain demand, revealing diverse market dynamics including stability, periodicity, chaos, and collapses through numerical analysis.

## Contribution

The paper presents a novel, simple demand-based dynamical model that captures complex market behaviors and can reproduce market collapses, advancing understanding of firm dynamics under uncertainty.

## Key findings

- Model exhibits equilibria, periodic, and chaotic behaviors.
- Numerical simulations reproduce market collapses.
- Model demonstrates sensitivity to parameter variations.

## Abstract

We propose and analyze numerically a simple dynamical model that describes the firm behaviors under uncertainty of demand forecast. Iterating this simple model and varying some parameters values we observe a wide variety of market dynamics such as equilibria, periodic and chaotic behaviors. Interestingly the model is also able to reproduce market collapses.