DCDS
Global stability of a price model with multiple delays
Ábel Garab Veronika Kovács Tibor Krisztin
Consider the delay differential equation \begin{equation*} \dot{x}(t)=a \Bigg(\sum_{i=1}^n b_i\big[x(t-s_i)- x(t-r_i)\big]\Bigg)-g(x(t)), \end{equation*} where $a>0$, $b_i>0$ and $0\leq s_i < r_i$ $(i\in \{1,\dots,n\})$ are parameters, $g\colon \mathbb{R} \to \mathbb{R}$ is an odd $C^1$ function with $g'(0)=0$, the map $(0,\infty)\ni \xi \mapsto g(\xi)/\xi\in\mathbb{R}$ is strictly increasing and $\sup_{\xi>0} g(\xi)/\xi>2a$. This equation can be interpreted as a price model, where $x(t)$ represents the price of an asset (e.g. price of share or commodity, currency exchange rate etc.) at time $t$. The first term on the right-hand side represents the positive response for the recent tendencies of the price and $-g(x(t))$ is responsible for the instantaneous negative feedback to the deviation from the equilibrium price.
    We study the local and global stability of the unique, non-hyperbolic equilibrium point. The main result gives a sufficient condition for global asymptotic stability of the equilibrium. The region of attractivity is also estimated in case of local asymptotic stability.
keywords: multiple delay infinite delay price model Delay differential equation stable $D$ operator. global stability neutral equation

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