Driven Force Induced Bifurcation Delay on the Chaotic Financial System

Abstract

To understand the variations in the financial characteristics, we examine the dynamical behaviors by considering the chaotic financial model with external force. First, the dynamical characteristics are analyzed by introducing the external driven force in the price index with commodity demand. We discover that the presence of an external force causes the alternate occurrence of oscillatory and steady states as a function of time. Interestingly, we find the existence of bifurcation delay (BD) during the transition from oscillatory (OS) to steady state (SS) or vice versa. Bifurcation delay is a phenomenon in which the bifurcation does not occur at the actual bifurcation point but rather at a later time, which is referred to as bifurcation delay. To confirm the delay in bifurcation, we estimate the actual bifurcation point and compare it to the observed bifurcation transition. Furthermore, to understand the variations in the bifurcation delay, we estimate the delay time between each consecutive cycle and find random fluctuations in the BD. Following that, the BD is virtualized via a transformed phase portrait. In addition, we show decreasing the value of average BD while increasing the frequency of external forcing. Second, the presence of BD is explored by incorporating external forces into the investment demand with unit investment cost. We discover the existence of a similar phenomenon with a constant bifurcation delay.