Journal Article

No. 2013-23 | May 27, 2013
Cobweb Theorems with Production Lags and Price Forecasting PDF Icon


The classical cobweb theorem is extended to include production lags and price forecasts. Price forecasting based on a longer period has a stabilizing effect on prices. Longer production lags do not necessarily lead to unstable prices; very long lags lead to cycles of constant amplitude. The classical cobweb requires elasticity of demand to be greater than that of supply; this is not necessarily the case in a more general setting. Random shocks are also considered.

JEL Classification

C02 C62 E32


Daniel Dufresne and Felisa Vázquez-Abad (2013). Cobweb Theorems with Production Lags and Price Forecasting. Economics: The Open-Access, Open-Assessment E-Journal, 7 (2013-23): 1—49.


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