Production delays, technology choice and cyclical cobweb dynamics

We develop a cobweb model in which firms, facing two-period production delay, have access to flexible (costly) and an inflexible (cheap) technology. Moreover, firms select between technologies depending on their evolutionary fitness, measured terms of past realized profits. The dynamics our is driven by four-dimensional nonlinear map. analytically show that its unique steady state may become unstable due Neimark-Sacker bifurcation, scenario gives rise cyclical price dynamics, as observed actual commodity markets. Simulations furthermore reveal also produce chaotic motion.