Divergence, Closed Cycles and Convergence in Scarf Environments: Experiments in the Dynamics of General Equilibrium Systems

Previous experimental work has demonstrated the power of the classical theory of economic dynamics. In particular, the models have proved to be accurate in predicting the principle directions of movement and orbit-like behavior in general equilibrium systems. Questions left open and addressed in this study are (i) do the markets necessarily converge to a unique interior equilibrium or can markets exhibit the