Bifurcations to periodic solutions in a production/inventory model (Q2458933): Difference between revisions

The paper presents an interesting application of the hamiltonian Hopf bifurcation theory in economic theory. The authors introduce the following model of production with quadratic costs and speed adjustments for the production devise: \[ \text{minimize the total costs } W = \int_{0}^{\infty}e^{-\varrho t} \left(\tfrac{h}{2}\,x^{2} + \Phi(v) + \tfrac{c}{2}\, u^{2}\right)\,dt \] subject to \[ \dot{x} = v - d,\quad \dot{v} = u, \] where \(x\) is the stock of inventory and \(u\) the rate of change of the production speed. The authors consider the discount rate \(\varrho\) like a small perturbation term of an autonomous Hamiltonian system. When \(\varrho = 0\), a Hamiltonian Hopf bifurcation happens and as a consequence two pairs of eigenvalues coincide along the imaginary axis and the system has two families of periodic solutions. When \(\varrho\) is close to zero and positive, only a single periodic orbits survives. The authors compare the results with those obtained some time ago by themselves using the classical Hopf bifurcation, interpret them also from the economical point of view and compare them with previous results in the field of economic theory.. Some pictures are obtained to justify the interpretations.