Journal Article Unscrambling the Concept of Chaos Through Thick and Thin: Reply Get access Richard H. Day Richard H. Day University of Southern California Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 101, Issue 2, May 1986, Pages 425–426, https://doi.org/10.2307/1891124 Published: 01 May 1986

This paper shows how fluctuations of an erratic and unstable nature can emerge from the classical, deterministic economic growth process. Implications of the analysis would appear to be at least two. First, pronounced changes in the way an economy behaves need not cause us to reject our understanding of how it works. Second, we need not seek in exogenous forces an explanation as to why behavioral patterns change and why it may be so difficult to anticipate future events from the profile of past experience.

Introduction, 302. — The learning model, 304. — Demand, cost, and environmental feedback, 307. — Satisficing's convergence to marginalism, 308. — A simple example, 310.