ABSTRACT

This chapter expands upon the conditions for stability. It examines whether points on the 45 line are stable, as well as the conditions under which consumer evaluation of quality converges to the 45 line, or evolves into patterns of oscillation, or degenerates into chaotic patterns. The chapter discusses the consumer determination of b i and considers an application of attractors. From the theory of attractors, it can be understood that in unit phase space it is the slope of a folded curve through the 45 line that determines stability of a solution, and that influences the slope of the curve. In the WTP (TK) case, the consumer remains at v^i, although willing to pay different amounts in order to continue consuming v^i. The quantity, xi, purchased of that variety changes with each change in the constraint, that is, with each change in bi.