This model reveals complex price dynamics in markets, highlighting nonlinear behavior and multistability.
In this paper, a supply–demand–price network model incorporating a marginal feedback mechanism is proposed to characterize the evolution of market prices. Unlike classical supply–demand models, the marginal effect of excess demand, defined as the rate of change in excess demand, is explicitly introduced into the price adjustment process. As the coefficient of the marginal feedback term varies, the system exhibits rich and complex nonlinear dynamics. In particular, the model gives rise to a centrally symmetric double-wing chaotic attractor, as well as a pair of coexisting single-wing chaotic attractors. The transition routes among different dynamical regimes are systematically analyzed using phase portraits, bifurcation diagrams, and Lyapunov exponents. Furthermore, multistability phenomena are observed, including the coexistence of equilibrium points, limit cycles, and chaotic attractors. The corresponding basins of attraction are illustrated to reveal their intricate and interwoven structures. In addition, the emergence of endogenous chaos is investigated through both theoretical analysis and numerical simulations. Finally, the consistency between the model dynamics and real market data provides empirical evidence supporting the validity and applicability of the proposed framework.
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Wang et al. (2026) studied this question.
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