Updating Wealth in an Asset Pricing Model with Heterogeneous Agents

Figure 11

Basins of attraction in the plane (𝑚₀,𝑥₀) for 𝑤₀=0, 𝑎=0.1 and the other parameter values are as in Figure 5. (a) 𝛽=1.25, (b) 𝛽=2.

(a)

(b)