Updating Wealth in an Asset Pricing Model with Heterogeneous Agents

Figure 10

Basins of attraction in the plane (𝑚₀,𝑤₀) for 𝑥₀=1.3, 𝑎=0.1 and the other parameter values as in Figure 5. (a) 𝛽=1.8, (b) 𝛽=2.

(a)

(b)