Resumen de Memory, market stability and the nonlinear cobweb theorem

J. M. Gaffney, C. E. M. Pearce

• Carlson has shown that if the predicted price in the linear cobweb model is taken as the average of all previous actual prices, then stability results independently of parameter values provided only that the demand--curve gradient is less than that of the supply curve. This result has subsequently been generalised by Manning and by Holmes and Manning. We investigate the robustness of their results.