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Research ArticleIncrease in Equilibrium Price by Fast Oscillations
Babar Ahmad1 and Khalid Iqbal Mahr2
1 COMSATS Institute of Information Technology Islamabad 44000 Pakistan2Muhammad Ali Jinnah University Islamabad 44000 Pakistan
Correspondence should be addressed to Babar Ahmad babarsmsgmailcom
Received 15 January 2014 Revised 25 April 2014 Accepted 25 April 2014 Published 20 May 2014
Academic Editor Ivo Petras
Copyright copy 2014 B Ahmad and K I Mahr This is an open access article distributed under the Creative Commons AttributionLicense which permits unrestricted use distribution and reproduction in any medium provided the original work is properlycited
The dynamics of a market can be described by a differential equation Using the concept of fast oscillation the system (typicalmarket) can also oscillate around a new equilibrium price with an increase Previously that increase was established by applyingharmonic force In present work harmonic force is replaced by an arbitrary periodic force with zero mean Hence the increase inequilibrium price can be controlled by varying the external arbitrary periodic force
1 Introduction
The statistical physics and nonlinear dynamics can beemployed as tools in economics and social studies [1] to buildup econophysics [2] and statistical finance [3] Examples aretrading and price formation [4] excess and clustering ofstochastic volatility [5 6] investigation of scaling [7] of thecompetitive equilibrium [8 9] and role of noise to increasestability [10 11] in many physical systems
Using Kapitza method [12] Landau and Lifshitz dis-cussed the stability of the inverted pendulumunder fast oscil-lation He showed that when the suspension of a pendulumhas vertical modulation with harmonic force the position120601 = 0 is always stable and 120601 = 120587 is conditionally stable [13]
Using this approach in the market Holyst and Woj-ciechowski have shown that due to fast oscillation a newequilibrium price can occur Using external harmonic forcethis new equilibrium price is proportional to the difference11986310158401015840(119901) minus 11987810158401015840(119901) Hence due to fast oscillation the equilibriumprice of the market will increase [14]
In 2009 Ahmad and Borisenok extended the idea of sta-bility for arbitrary periodic force and stabilized the invertedpendulum with relatively low frequency They used periodickicking pulses in place of harmonic force Then the condi-tional stable point is controlled by varying external periodicforce [15]
In this paper the dynamics of the market is studied alongwith external arbitrary periodic force with zero mean Thenanother equilibriumprice can be establishedwith an increaseThis increase can be controlled by applying a particularperiodic force
2 Kapitza Method for ArbitraryPeriodic Force
A particle of mass 119898 is moving under a force due to time-independent potential 119880(119909)
1198911(119909) = minus
119889119880
119889119909(1)
and a periodic fast oscillating force with zero mean This fastoscillating force in Fourier expansion is
1198912(119909 119905)
=infin
sum119896=1
[119886119896(119909) cos (119896120596119905) + 119887
119896(119909) sin (119896120596119905)]
(2)
Here 120596 equiv 2120587119879 ≫ 21205871198790equiv 1205960and 120596
0is the frequency of
motion due to 1198911 Themean value of a function is denoted by
bar and is defined as
119891 =1
119879int119879
0
119891 (119909 119905) 119889119905 (3)
Hindawi Publishing CorporationJournal of Nonlinear DynamicsVolume 2014 Article ID 593254 8 pageshttpdxdoiorg1011552014593254
2 Journal of Nonlinear Dynamics
O
f(x t)
l
g
120601 = 0
120601
Figure 1 Vertical modulation
Also the Fourier coefficient 1198860is
1198860(119909) =
2
119879int119879
0
1198912(119909 119905) 119889119905 (4)
Since we are choosing a force with zero mean then from (3)and (4) it follows that
119891 cong 1198860= 0 (5)
In (2) 119886119896and 119887119896are the Fourier coefficients given by
119886119896(119909) =
2
119879int119879
0
1198912(119909 119905) cos 119896120596119905 119889119905
119887119896(119909) =
2
119879int119879
0
1198912(119909 119905) sin 119896120596119905 119889119905
(6)
Due to (1) and (2) the equation of motion is
119898 = 1198911(119909) + 119891
2(119909 119905) (7)
Equation (7) represents that the system has two motions at atime one along a smooth path and the other small but fastoscillations So the path can be written as
119909 (119905) = 119883 (119905) + 120585 (119905) (8)
Here 119883(119905) represents smooth path and 120585(119905) represents fastoscillations By averaging procedure the effective potentialenergy function is [15]
119880eff = 119880 +1
41198981205962
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962 (9)
21 Stability Kapitza pendulum modulated vertically byarbitrary periodic force 119891(119909 119905) is illustrated in Figure 1Where 119892 is acceleration due to gravity 119897 is the length of themassless string The system is stabilized by minimizing (9)The position 120601 = 0 is always stable (see Figure 2(a)) whilethe position 120601 = 120587 is stable if 1205962 gt 05119892119897suminfin
119896=1(1198962(1198862
119896+ 1198872119896))
(see Figure 2(b)) The sum suminfin
119896=1((1198862119896+ 1198872119896)1198962) is associated
with external force It follows that due to fast oscillation theinverted position may also be stable [15]
The concept of fast oscillation is used in the marketThen another equilibrium price with an increase can beselected This increase can be controlled by varying theexternal periodic force
3 Effect of Fast Oscillation onEquilibrium Price
Almost every commodity hasmore price than its actual priceas some external factors are involved in that increase Inthis paper a mathematical approach is presented how anauthority can increasedecrease the price of the commodity
Let 119901(119905) be the commodity price at any time 119905 The timerate of change of 119901(119905) can be assumed proportional to thedifference between the demand 119863(119901) and the supply 119878(119901)functions that is
= 120573 [119863 (119901) minus 119878 (119901)] (10)
where 120573 is proportionally constant Let 119901 = 119901lowast be theequilibrium price then
119863(119901lowast) = 119878 (119901
lowast) (11)
Next a fast oscillating periodic forcewith zeromean is appliedto the dynamics of the market then (10) takes the form
= 120573 [119863 (119901) minus 119878 (119901)]
+infin
sum119896=1
(119886119896cos 119896120596119905 + 119887
119896sin 119896120596119905)
(12)
Here 120596 = 2120587119879 ≫ 1205960= 2120587119879
0is the frequency of market
perturbation with 1205960which is the approaching speed of (10)
towards equilibrium price In (12)
119886119896= 119886119896(119901)
119887119896= 119887119896(119901)
(13)
are price dependent amplitudesLike Kapitza method the price 119901(119905) can be split into its
slow 120601(119905) and fast 120585(119905) components as
119901 (119905) = 120601 (119905) + 120585 (119905) (14)
and its time derivative is
= 120601 + 120585 (15)
We assume that 119886119896= 119886119896(120601) and 119887
119896= 119887119896(120601) Using above
transformations defined in (14) and (15) (12) becomes
120601 + 120585 = 120573 [119863 (120601 + 120585) minus 119878 (120601 + 120585)]
+infin
sum119896=1
(119886119896cos 119896120596119905 + 119887
119896sin 119896120596119905)
(16)
Next using Taylorrsquos series expansion up to 2nd order term(16) can be rewritten as
120601 + 120585 = 119865 (120601) + 1205851198651015840(120601) +
1
2120585211986510158401015840(120601)
+infin
sum119896=1
(119886119896cos 119896120596119905 + 119887
119896sin 119896120596119905)
(17)
where 119865(120601) = 120573[119863(119901) minus 119878(119901)]
Journal of Nonlinear Dynamics 3
minus120587 120587
120601
00
Uef
fmgl
(a)
0minus120587 120587
120601
0
Uef
fmgl
(b)
Figure 2 Minimization of dimensionless effective potential energy function
Now the slow and fast part must be separately equal forfast part we simply put
120585 =infin
sum119896=1
(119886119896cos 119896120596119905 + 119887
119896sin 119896120596119905) (18)
Integrating (18) with initial condition 1205850= 0 the fast
component is
120585 =1
120596
infin
sum119896=1
1
119896(119886119896sin 119896120596119905 minus 119887
119896cos 119896120596119905) (19)
Using (3) the mean values of 120585 and 120585 are zero while 120601 and 120601are unaltered Then the mean values of (14) and (15) can begiven as
119901 = 120601
= 120601(20)
Hence 120601 describes the slow price and 120601 describes the rate ofslow price averaged over rapid oscillations
Next the mean values of 1205852 over the time interval [0 119879]are
1205852 =1
21205962
infin
sum119896=1
(1198862119896+ 1198872119896
1198962) (21)
Also 119865(120601) and its derivatives remain unaltered during thistime averaging Next time averaging of (17) will give afunction of 120601 only That is
120601 = 119865 (120601) +1
41205962
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)11986510158401015840(120601) (22)
or
= 120573([119863 minus 119878] (120601) +1
41205962
infin
sum119896=1
(1198862119896+ 1198872119896
1198962) [11986310158401015840minus 11987810158401015840] (120601))
(23)
It shows that after averaging the influence of fast periodicoscillations on the slow price component is also dependingon curvatures of demand and supply functions and thiseffect vanishes when both functions are linear Due to thisfast oscillation the averaged equilibrium price can be easilycalculated Expanding first term on right hand side of (23)into the power series around the value 119901lowast and consideringlinear part only we have
= 120573( [1198631015840(120601) minus 119878
1015840(120601)] (120601 minus 120601
lowast)
+1
41205962[11986310158401015840(120601) minus 119878
10158401015840(120601)]infin
sum119896=1
(1198862119896+ 1198872119896
1198962))
(24)
Following (11) at equilibrium price we must have = 0
0 = 120573( [1198631015840(120601) minus 119878
1015840(120601)] (120601 minus 120601
lowast)
+1
41205962[11986310158401015840(120601) minus 119878
10158401015840(120601)]infin
sum119896=1
(1198862119896+ 1198872119896
1198962))
(25)
consequently
120601 minus 120601lowast=1
4120596211986310158401015840 (120601) minus 11987810158401015840 (120601)
1198781015840 (120601) minus 1198631015840 (120601)
infin
sum119896=1
(1198862119896+ 1198872119896
1198962) (26)
The right hand side of (26) is a function of 120601 only Sinceafter averaging 120601 changes slightly that is 120601 asymp 120601 Also at
4 Journal of Nonlinear Dynamics
equilibrium 120601 is very near to 120601lowast while 119901lowast can be located farfrom 119901lowast Hence for good approximation we can write
119901lowast minus 119901lowast= Δ119901lowast=1
4120596211986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)
(27)
Equation (27) gives the shift of equilibrium price of themarket due to fast oscillations
This shift can increase the equilibrium price of a typicalmarket if
(a) the infinite sum increases(b) the frequency of small oscillation is small(c)
11986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)gt 0 (28)
In Kapitza method of averaging for arbitrary periodic forcethe increase in infinite sum will decrease the frequency ofoscillation at 120601 = 120587 To follow (28) we must suppose that1198631015840(119901) lt 0 11986310158401015840(119901) gt 0 1198781015840(119901) gt 0 and 11987810158401015840(119901) lt 0 Thenit follows that as price 119901(119905) increases the demand 119863(119901)decreases and 119878(119901) increases in a slow manner As a resultsaturation in demand and supply is established Hence byaveraging procedure the equilibrium price has shifted upChoose
11986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)= 1198622gt 0 (29)
Then (27) can be rewritten as
Δ119901lowast=
1
412059621198622
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)
= 025119860119878119896
(30)
where 119860 = 11986221205962
4 Shift of Market Equilibrium by ExternalArbitrary Periodic Force
In this section we will select some arbitrary periodic forcesand study the increase in equilibrium price by using (30)
41 Harmonic Force First we choose the harmonic force
119891 (119905) = sin120596119905 (31)
as external force (see Figure 3) Using (4) the Fouriercoefficient 119886
0= 0 indicates that the mean value of 119891(119905) about
its period 119879 = 2120587120596 is zero Next using (6) the other Fouriercoefficients for (31) are
119886119896= 0
119887119896=
0 119896 = 1
1 119896 = 1
(32)
1
05
0
minus05
minus1
2120587120587
t
1205874 1205872 31205874 51205874 31205872 71205874
f(t)
Figure 3 Sine type external force
Quantity
Pric
e
0
Equilibrium price due to external periodic forceEquilibrium price without external periodic force
D
Q
P1
P2
S
Figure 4 Change in equilibrium due to external force
Using these coefficients in (30) the old equilibrium price isshifted to new equilibrium price by [14]
Δ119901lowast= 025119860 (33)
This shift is illustrated in Figure 4
42 Triangular Force Next we apply periodical triangulartype force 119877
119904(119905) = 119877
119904(119905 + 119879)
119877119878(119905) =
4119905
119879if 0 le 119905 lt 119879
4
4
119879(119879
2minus 119905) if 119879
4le 119905 lt
3119879
4
4 (119905 minus 119879)
119879if 31198794le 119905 lt 119879
(34)
Journal of Nonlinear Dynamics 5
with the same property 119877119878= 0 (see Figure 5) Next using (6)
the other Fourier coefficients for (34) are
119886119896= 0
119887119896=
4
11989621205872[1 minus (minus1)
119896]
(35)
or
119887119896=
0 119896 is even8
11989621205872119896 is odd
(36)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
64
1205874
infin
sum119896=1
1
(2119896 minus 1)6
=16
12058741205876
960119860
= 0164119860
(37)
Here (37) gives the shift of new equilibrium price from theold one due to fast oscillation with triangular external forceThis increase is lower than the increase with harmonic force
43 Rectangular Force The next force is rectangular typeforce 119877
119897(119905) = 119877
119897(119905 + 119879) (see Figure 6) given by
119877119897(119905) =
1 0 le 119905 le119879
2
minus1119879
2le 119905 le 119879
(38)
with the same property 119877119897= 0
Next using (6) the other Fourier coefficients for (38) are
119886119896= 0
119887119896=
0 119896 is even4
119896120587119896 is odd
(39)
or
1198872119896minus1
=4
(2119896 minus 1) 120587 (40)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
16
1205872
infin
sum119896=1
1
(2119896 minus 1)4
= 025119860 (1645)
= 0411119860
(41)
Here (41) gives the shift of new equilibrium price for rect-angular force It has raised up the equilibrium price thanthe previous forces Hence by applying a different force anincreasedecrease in equilibrium price is possible
0
1
TT4 3T4
minus1
Figure 5 Triangular type force
0
1
TT2
minus1
Figure 6 Rectangular type force
5 Conclusions
A method similar to Kapitza method of averaging for anarbitrary periodic force is used in the dynamics of themarketThen another equilibrium price with an increase may bepossible Previously harmonic force was used to raise theequilibrium price of the market In this work an arbitraryperiodic force with zero mean is applied to raise it Now thisincrease can be controlled by varying the external arbitraryperiodic force On the same pattern when the governmentneeds money it announces an increase in the rates of existingtaxes or adds new taxes and when it wants to give relief topublic it decreases the rates of existing taxes or deletes sometaxes in the price of commodity
In September 2012 compressed natural gas (CNG) wasbeing sold at Rs 9253 per kg in region I Details are in Table 1[16]
In Table 1 if 119860 was gas price then some external factorswere involved and 119864 was the next price again price wasdecided by adding some factors (federal price compressioncost profit and taxes) and the consumer price was 119871 Here 119864and 119871 were new equilibrium prices with an increase
Next Consumer Rights Commission of Pakistan did notconsider it a justified price so they pursued the SupremeCourt of Pakistan who on October 26 2012 passed an orderdeclaring to implement the July 1 2012 prices That pricedetail is in Table 2 [17]
Then the consumer was paying Rs 61 instead of Rs9253 per kg in region I
6 Journal of Nonlinear Dynamics
Table 1 CNG consumer price detailed break up wef October 22 2012
S number Components Region I Region IIRsKg RsMMBtu RsKg RsMMBtu
119860Average well headpricecost of gas paid toexploration companies
1804 35887 92 1648 35887 92
119861Operating cost of gascompanies 114 2269 6 104 2269 6
119862Return on investment togas companies Otherincomes (net of prior year
1804 35887 92 1648 35887 92
119863 adjustment if any etc) minus053 minus1063 minus3 minus049 minus1063 minus3
119864 = 119860 to119863 Average prescribed price ofnatural gas 1951 38827 100 1783 38826 100
119865
Sale price of natural gas forCNG stations as advised byFederal Government underSection 8(3) of OGRAordinance includingGDScross-subsidization
3519 70032 38 3214 70002 38
119866Operating cost of gasstations 2080 11380 22 2080 45301 25
119867Profit of CNG stationowners 1119 22260 12 1059 23061 13
119868 GIDC 1325 26357 14 918 20000 11119869 GST (25 of price 119865 + 1) 1210 24069 13 1033 22500 12
119870Differential margin forregion II mdash 150 3267 2
119871Total CNG consumer price(119865 minus 119870) 9253 184098 100 8454 184131 100
0
1
TT6 T2
minus1
minus12
12
Figure 7 Hat type force
In Table 1 the equilibrium price was raised up by addingsome factors and in Table 2 it was lowered down by deletingsome factors So when the authority needs money it raisedup the prices and when it wants to give relieve to people itlowers down the prices
A number of more examples can be found Every con-sumer has to pay Rs 35 as ptv (Pakistan television) fee and tosupport Neelum Jhelum project they are bearing the cost ofdelay and inefficiency and are paying a surcharge of 10 paisa
per unit in their electricity bills Moreover different slabs ofusage units have different rates of billing
Appendices
Here some more periodic forces with zero mean are given
A Hat Force
The first force is rectangular hat type (see Figure 7) definedby
119871119888(119905) =
1
2if 0 le 119905 lt 1
6119879
1 if 16119879 le 119905 lt
1
3119879
1
2if 13119879 le 119905 lt
1
2119879
minus1
2if 12119879 le 119905 lt
2
3119879
minus1 if 23119879 le 119905 lt
5
6119879
minus1
2if 56119879 le 119905 lt 119879
(A1)
Journal of Nonlinear Dynamics 7
Table 2 CNG consumer price detailed break up
S number Components of price Region I Region II
1
Cost of production(a) Cost of gas billed 3109 2840(b) Cost of compression 546 546total cost of production 3655 3386
2 (10ndash12) Retailer fixed profit 4386 4063
3
Taxes(a) GIDC 13 13(b) GST 21 cost of gas 6529 5964
19529 18964Total (1 + 2 + 3) 60465 56887
5 Consumer retail price (consumerwillingness to pay) 61 57
Its mean value about its period is zero Then by Fourierexpansion in place of (A1)
119886119896= 0
119887119896=1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)
(A2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962[1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)]2
= 025119860 (09208)
= 02302119860
(A3)
This force also lowered down the equilibrium price ascompared to harmonic force but raised up the triangular typeforce
B Trapezoidal Force
Thenext force is trapezoidal type force119879119898(119905) = 119879
119898(119905+119879) (see
Figure 8) given by
119879119898(119905) =
8119905
119879if 0 le 119905 lt 119879
8
1 if 1198798le 119905 lt
3119879
8
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt
7119879
8
8 (119905 minus 119879)
119879if 71198798le 119905 lt 119879
(B1)
since 1198860= 0 rArr 119879
119898= 0
Next the Fourier coefficients of (B1) are119886119896= 0
119887119896=16
12058721
1198962sin 119896120587
4
(B2)
0
1
TT8
minus1
3T8 5T8 7T8
Figure 8 Trapezoidal type force
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
256
1205874
infin
sum119896=1
1
1198966sin2119896120587
4
= 025119860 (13571)
= 03393119860
(B3)
Due to this force the equilibrium price has been raised up ascompared to hat type force
C Quadratic Force
The next force is quadratic type force 119876119888(119905) = 119876
119888(119905 + 119879) (see
Figure 9) given by
119876119888(119905) =
1 if 0 le 119905 lt 31198798
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt 119879
(C1)
with the same property 119876119888= 0 as 119886
0= 0 Then by Fourier
expansion in the place of (C1)
119886119896= 0
119887119896= (
2
119896120587+
8
12058721198962sin 119896120587
4)
(C2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962(2
119896120587+
8
12058721198962sin 119896120587
4)2
= 025119860 (15426)
= 03857119860
(C3)
It is observed that applying this external force the equilib-rium price has more raised up
All these results with conditional stable points are givenin Table 3
By applying a different force an increasedecrease inequilibrium price can be made
8 Journal of Nonlinear Dynamics
0
1
T
minus1
3T8 5T8
Figure 9 Quadratic type force
Table 3 Shift in price equilibrium by fast oscillation
Force typeSum
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962
Stabilitycondition at 120601 = 120587
Shift in priceEquilibrium Δ119901lowast
Sin 1 1205962 gt 2119892119897 025119860
Triangular 0658 1205962 gt 30396119892119897 0164119860
Linear hat 09208 1205962 gt 2172119892119897 02302119860
Trapezium 13571 1205962 gt 14736119892119897 03393119860
Quadratic 15426 1205962 gt 12967119892119897 03857119860
Rectangular 1645 1205962 gt 12159119892119897 0411119860
Conflict of Interests
The authors declare that there is no conflict of interestsregarding the publication of this paper
References
[1] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 1999
[2] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 2000
[3] J-P Bouchaud ldquoAn introduction to statistical financerdquo PhysicaA vol 313 no 1-2 pp 238ndash251 2002
[4] M G Daniels J D Farmer L Gillemot G Iori and E SmithldquoQuantitative model of price diffusion and market frictionbased on trading as a mechanistic random processrdquo PhysicalReview Letters vol 90 Article ID 108102 2003
[5] R Friedmann and W G Sanddorf-Kohle ldquoVolatility clusteringand nontrading days in Chinese stock marketsrdquo Journal ofEconomics and Business vol 54 no 2 pp 193ndash217 2002
[6] G Bonanno D Valenti and B Spagnolo ldquoMean escape time ina system with stochastic volatilityrdquo Physical Review E vol 75Article ID 016106 2007
[7] D Eliezer and I I Kogan ldquoScaling laws for the marketmicrostructure of the interdealer broker marketsrdquo SSRN eLi-brary 1998
[8] X Yiping R Chandramouli and C Cordeiro ldquoPrice dynamicsin competitive agile spectrum access marketsrdquo IEEE Journal onSelected Areas in Communications vol 25 no 3 pp 613ndash6212007
[9] DValenti B Spagnolo andG Bonanno ldquoHitting time distribu-tions in financial marketsrdquo Physica A vol 382 no 1 pp 311ndash3202007
[10] H Mizuta K Steiglitz and E Lirov ldquoEffects of price signalchoices on market stabilityrdquo Journal of Economic Behavior andOrganization vol 52 no 2 pp 235ndash251 2003
[11] G Bonanno D Valenti and B Spagnolo ldquoRole of noise ina market model with stochastic volatilityrdquo European PhysicalJournal B vol 53 no 3 pp 405ndash409 2006
[12] P L Kapitza ldquoDynamic stability of a pendulum with anoscillating point of suspensionrdquo Journal of Experimental andTheoretical Physics vol 21 pp 588ndash597 1951
[13] L D Landau and E M Lifshitz Mecanics PergamonPressButterworth Oxford UK 3rd edition 2005
[14] J A Hołyst and W Wojciechowski ldquoThe effect of Kapitzapendulum and price equilibriumrdquo Physica A vol 324 no 1-2pp 388ndash395 2003
[15] B Ahmad and S Borisenok ldquoControl of effective potentialminima for Kapitza oscillator by periodical kicking pulsesrdquoPhysics Letters A vol 373 no 7 pp 701ndash707 2009
[16] httpsupremecourtgovpkwebuser filesFileCONSTP33-34-2005pdf
[17] ldquoCRCP House Islamabadrdquo Islamabad Pakistan httpwwwcrcporgpk
International Journal of
AerospaceEngineeringHindawi Publishing Corporationhttpwwwhindawicom Volume 2014
RoboticsJournal of
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Active and Passive Electronic Components
Control Scienceand Engineering
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International Journal of
RotatingMachinery
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporation httpwwwhindawicom
Journal ofEngineeringVolume 2014
Submit your manuscripts athttpwwwhindawicom
VLSI Design
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Shock and Vibration
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Civil EngineeringAdvances in
Acoustics and VibrationAdvances in
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Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Electrical and Computer Engineering
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Advances inOptoElectronics
Hindawi Publishing Corporation httpwwwhindawicom
Volume 2014
The Scientific World JournalHindawi Publishing Corporation httpwwwhindawicom Volume 2014
SensorsJournal of
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Modelling amp Simulation in EngineeringHindawi Publishing Corporation httpwwwhindawicom Volume 2014
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Chemical EngineeringInternational Journal of Antennas and
Propagation
International Journal of
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Navigation and Observation
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DistributedSensor Networks
International Journal of
2 Journal of Nonlinear Dynamics
O
f(x t)
l
g
120601 = 0
120601
Figure 1 Vertical modulation
Also the Fourier coefficient 1198860is
1198860(119909) =
2
119879int119879
0
1198912(119909 119905) 119889119905 (4)
Since we are choosing a force with zero mean then from (3)and (4) it follows that
119891 cong 1198860= 0 (5)
In (2) 119886119896and 119887119896are the Fourier coefficients given by
119886119896(119909) =
2
119879int119879
0
1198912(119909 119905) cos 119896120596119905 119889119905
119887119896(119909) =
2
119879int119879
0
1198912(119909 119905) sin 119896120596119905 119889119905
(6)
Due to (1) and (2) the equation of motion is
119898 = 1198911(119909) + 119891
2(119909 119905) (7)
Equation (7) represents that the system has two motions at atime one along a smooth path and the other small but fastoscillations So the path can be written as
119909 (119905) = 119883 (119905) + 120585 (119905) (8)
Here 119883(119905) represents smooth path and 120585(119905) represents fastoscillations By averaging procedure the effective potentialenergy function is [15]
119880eff = 119880 +1
41198981205962
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962 (9)
21 Stability Kapitza pendulum modulated vertically byarbitrary periodic force 119891(119909 119905) is illustrated in Figure 1Where 119892 is acceleration due to gravity 119897 is the length of themassless string The system is stabilized by minimizing (9)The position 120601 = 0 is always stable (see Figure 2(a)) whilethe position 120601 = 120587 is stable if 1205962 gt 05119892119897suminfin
119896=1(1198962(1198862
119896+ 1198872119896))
(see Figure 2(b)) The sum suminfin
119896=1((1198862119896+ 1198872119896)1198962) is associated
with external force It follows that due to fast oscillation theinverted position may also be stable [15]
The concept of fast oscillation is used in the marketThen another equilibrium price with an increase can beselected This increase can be controlled by varying theexternal periodic force
3 Effect of Fast Oscillation onEquilibrium Price
Almost every commodity hasmore price than its actual priceas some external factors are involved in that increase Inthis paper a mathematical approach is presented how anauthority can increasedecrease the price of the commodity
Let 119901(119905) be the commodity price at any time 119905 The timerate of change of 119901(119905) can be assumed proportional to thedifference between the demand 119863(119901) and the supply 119878(119901)functions that is
= 120573 [119863 (119901) minus 119878 (119901)] (10)
where 120573 is proportionally constant Let 119901 = 119901lowast be theequilibrium price then
119863(119901lowast) = 119878 (119901
lowast) (11)
Next a fast oscillating periodic forcewith zeromean is appliedto the dynamics of the market then (10) takes the form
= 120573 [119863 (119901) minus 119878 (119901)]
+infin
sum119896=1
(119886119896cos 119896120596119905 + 119887
119896sin 119896120596119905)
(12)
Here 120596 = 2120587119879 ≫ 1205960= 2120587119879
0is the frequency of market
perturbation with 1205960which is the approaching speed of (10)
towards equilibrium price In (12)
119886119896= 119886119896(119901)
119887119896= 119887119896(119901)
(13)
are price dependent amplitudesLike Kapitza method the price 119901(119905) can be split into its
slow 120601(119905) and fast 120585(119905) components as
119901 (119905) = 120601 (119905) + 120585 (119905) (14)
and its time derivative is
= 120601 + 120585 (15)
We assume that 119886119896= 119886119896(120601) and 119887
119896= 119887119896(120601) Using above
transformations defined in (14) and (15) (12) becomes
120601 + 120585 = 120573 [119863 (120601 + 120585) minus 119878 (120601 + 120585)]
+infin
sum119896=1
(119886119896cos 119896120596119905 + 119887
119896sin 119896120596119905)
(16)
Next using Taylorrsquos series expansion up to 2nd order term(16) can be rewritten as
120601 + 120585 = 119865 (120601) + 1205851198651015840(120601) +
1
2120585211986510158401015840(120601)
+infin
sum119896=1
(119886119896cos 119896120596119905 + 119887
119896sin 119896120596119905)
(17)
where 119865(120601) = 120573[119863(119901) minus 119878(119901)]
Journal of Nonlinear Dynamics 3
minus120587 120587
120601
00
Uef
fmgl
(a)
0minus120587 120587
120601
0
Uef
fmgl
(b)
Figure 2 Minimization of dimensionless effective potential energy function
Now the slow and fast part must be separately equal forfast part we simply put
120585 =infin
sum119896=1
(119886119896cos 119896120596119905 + 119887
119896sin 119896120596119905) (18)
Integrating (18) with initial condition 1205850= 0 the fast
component is
120585 =1
120596
infin
sum119896=1
1
119896(119886119896sin 119896120596119905 minus 119887
119896cos 119896120596119905) (19)
Using (3) the mean values of 120585 and 120585 are zero while 120601 and 120601are unaltered Then the mean values of (14) and (15) can begiven as
119901 = 120601
= 120601(20)
Hence 120601 describes the slow price and 120601 describes the rate ofslow price averaged over rapid oscillations
Next the mean values of 1205852 over the time interval [0 119879]are
1205852 =1
21205962
infin
sum119896=1
(1198862119896+ 1198872119896
1198962) (21)
Also 119865(120601) and its derivatives remain unaltered during thistime averaging Next time averaging of (17) will give afunction of 120601 only That is
120601 = 119865 (120601) +1
41205962
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)11986510158401015840(120601) (22)
or
= 120573([119863 minus 119878] (120601) +1
41205962
infin
sum119896=1
(1198862119896+ 1198872119896
1198962) [11986310158401015840minus 11987810158401015840] (120601))
(23)
It shows that after averaging the influence of fast periodicoscillations on the slow price component is also dependingon curvatures of demand and supply functions and thiseffect vanishes when both functions are linear Due to thisfast oscillation the averaged equilibrium price can be easilycalculated Expanding first term on right hand side of (23)into the power series around the value 119901lowast and consideringlinear part only we have
= 120573( [1198631015840(120601) minus 119878
1015840(120601)] (120601 minus 120601
lowast)
+1
41205962[11986310158401015840(120601) minus 119878
10158401015840(120601)]infin
sum119896=1
(1198862119896+ 1198872119896
1198962))
(24)
Following (11) at equilibrium price we must have = 0
0 = 120573( [1198631015840(120601) minus 119878
1015840(120601)] (120601 minus 120601
lowast)
+1
41205962[11986310158401015840(120601) minus 119878
10158401015840(120601)]infin
sum119896=1
(1198862119896+ 1198872119896
1198962))
(25)
consequently
120601 minus 120601lowast=1
4120596211986310158401015840 (120601) minus 11987810158401015840 (120601)
1198781015840 (120601) minus 1198631015840 (120601)
infin
sum119896=1
(1198862119896+ 1198872119896
1198962) (26)
The right hand side of (26) is a function of 120601 only Sinceafter averaging 120601 changes slightly that is 120601 asymp 120601 Also at
4 Journal of Nonlinear Dynamics
equilibrium 120601 is very near to 120601lowast while 119901lowast can be located farfrom 119901lowast Hence for good approximation we can write
119901lowast minus 119901lowast= Δ119901lowast=1
4120596211986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)
(27)
Equation (27) gives the shift of equilibrium price of themarket due to fast oscillations
This shift can increase the equilibrium price of a typicalmarket if
(a) the infinite sum increases(b) the frequency of small oscillation is small(c)
11986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)gt 0 (28)
In Kapitza method of averaging for arbitrary periodic forcethe increase in infinite sum will decrease the frequency ofoscillation at 120601 = 120587 To follow (28) we must suppose that1198631015840(119901) lt 0 11986310158401015840(119901) gt 0 1198781015840(119901) gt 0 and 11987810158401015840(119901) lt 0 Thenit follows that as price 119901(119905) increases the demand 119863(119901)decreases and 119878(119901) increases in a slow manner As a resultsaturation in demand and supply is established Hence byaveraging procedure the equilibrium price has shifted upChoose
11986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)= 1198622gt 0 (29)
Then (27) can be rewritten as
Δ119901lowast=
1
412059621198622
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)
= 025119860119878119896
(30)
where 119860 = 11986221205962
4 Shift of Market Equilibrium by ExternalArbitrary Periodic Force
In this section we will select some arbitrary periodic forcesand study the increase in equilibrium price by using (30)
41 Harmonic Force First we choose the harmonic force
119891 (119905) = sin120596119905 (31)
as external force (see Figure 3) Using (4) the Fouriercoefficient 119886
0= 0 indicates that the mean value of 119891(119905) about
its period 119879 = 2120587120596 is zero Next using (6) the other Fouriercoefficients for (31) are
119886119896= 0
119887119896=
0 119896 = 1
1 119896 = 1
(32)
1
05
0
minus05
minus1
2120587120587
t
1205874 1205872 31205874 51205874 31205872 71205874
f(t)
Figure 3 Sine type external force
Quantity
Pric
e
0
Equilibrium price due to external periodic forceEquilibrium price without external periodic force
D
Q
P1
P2
S
Figure 4 Change in equilibrium due to external force
Using these coefficients in (30) the old equilibrium price isshifted to new equilibrium price by [14]
Δ119901lowast= 025119860 (33)
This shift is illustrated in Figure 4
42 Triangular Force Next we apply periodical triangulartype force 119877
119904(119905) = 119877
119904(119905 + 119879)
119877119878(119905) =
4119905
119879if 0 le 119905 lt 119879
4
4
119879(119879
2minus 119905) if 119879
4le 119905 lt
3119879
4
4 (119905 minus 119879)
119879if 31198794le 119905 lt 119879
(34)
Journal of Nonlinear Dynamics 5
with the same property 119877119878= 0 (see Figure 5) Next using (6)
the other Fourier coefficients for (34) are
119886119896= 0
119887119896=
4
11989621205872[1 minus (minus1)
119896]
(35)
or
119887119896=
0 119896 is even8
11989621205872119896 is odd
(36)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
64
1205874
infin
sum119896=1
1
(2119896 minus 1)6
=16
12058741205876
960119860
= 0164119860
(37)
Here (37) gives the shift of new equilibrium price from theold one due to fast oscillation with triangular external forceThis increase is lower than the increase with harmonic force
43 Rectangular Force The next force is rectangular typeforce 119877
119897(119905) = 119877
119897(119905 + 119879) (see Figure 6) given by
119877119897(119905) =
1 0 le 119905 le119879
2
minus1119879
2le 119905 le 119879
(38)
with the same property 119877119897= 0
Next using (6) the other Fourier coefficients for (38) are
119886119896= 0
119887119896=
0 119896 is even4
119896120587119896 is odd
(39)
or
1198872119896minus1
=4
(2119896 minus 1) 120587 (40)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
16
1205872
infin
sum119896=1
1
(2119896 minus 1)4
= 025119860 (1645)
= 0411119860
(41)
Here (41) gives the shift of new equilibrium price for rect-angular force It has raised up the equilibrium price thanthe previous forces Hence by applying a different force anincreasedecrease in equilibrium price is possible
0
1
TT4 3T4
minus1
Figure 5 Triangular type force
0
1
TT2
minus1
Figure 6 Rectangular type force
5 Conclusions
A method similar to Kapitza method of averaging for anarbitrary periodic force is used in the dynamics of themarketThen another equilibrium price with an increase may bepossible Previously harmonic force was used to raise theequilibrium price of the market In this work an arbitraryperiodic force with zero mean is applied to raise it Now thisincrease can be controlled by varying the external arbitraryperiodic force On the same pattern when the governmentneeds money it announces an increase in the rates of existingtaxes or adds new taxes and when it wants to give relief topublic it decreases the rates of existing taxes or deletes sometaxes in the price of commodity
In September 2012 compressed natural gas (CNG) wasbeing sold at Rs 9253 per kg in region I Details are in Table 1[16]
In Table 1 if 119860 was gas price then some external factorswere involved and 119864 was the next price again price wasdecided by adding some factors (federal price compressioncost profit and taxes) and the consumer price was 119871 Here 119864and 119871 were new equilibrium prices with an increase
Next Consumer Rights Commission of Pakistan did notconsider it a justified price so they pursued the SupremeCourt of Pakistan who on October 26 2012 passed an orderdeclaring to implement the July 1 2012 prices That pricedetail is in Table 2 [17]
Then the consumer was paying Rs 61 instead of Rs9253 per kg in region I
6 Journal of Nonlinear Dynamics
Table 1 CNG consumer price detailed break up wef October 22 2012
S number Components Region I Region IIRsKg RsMMBtu RsKg RsMMBtu
119860Average well headpricecost of gas paid toexploration companies
1804 35887 92 1648 35887 92
119861Operating cost of gascompanies 114 2269 6 104 2269 6
119862Return on investment togas companies Otherincomes (net of prior year
1804 35887 92 1648 35887 92
119863 adjustment if any etc) minus053 minus1063 minus3 minus049 minus1063 minus3
119864 = 119860 to119863 Average prescribed price ofnatural gas 1951 38827 100 1783 38826 100
119865
Sale price of natural gas forCNG stations as advised byFederal Government underSection 8(3) of OGRAordinance includingGDScross-subsidization
3519 70032 38 3214 70002 38
119866Operating cost of gasstations 2080 11380 22 2080 45301 25
119867Profit of CNG stationowners 1119 22260 12 1059 23061 13
119868 GIDC 1325 26357 14 918 20000 11119869 GST (25 of price 119865 + 1) 1210 24069 13 1033 22500 12
119870Differential margin forregion II mdash 150 3267 2
119871Total CNG consumer price(119865 minus 119870) 9253 184098 100 8454 184131 100
0
1
TT6 T2
minus1
minus12
12
Figure 7 Hat type force
In Table 1 the equilibrium price was raised up by addingsome factors and in Table 2 it was lowered down by deletingsome factors So when the authority needs money it raisedup the prices and when it wants to give relieve to people itlowers down the prices
A number of more examples can be found Every con-sumer has to pay Rs 35 as ptv (Pakistan television) fee and tosupport Neelum Jhelum project they are bearing the cost ofdelay and inefficiency and are paying a surcharge of 10 paisa
per unit in their electricity bills Moreover different slabs ofusage units have different rates of billing
Appendices
Here some more periodic forces with zero mean are given
A Hat Force
The first force is rectangular hat type (see Figure 7) definedby
119871119888(119905) =
1
2if 0 le 119905 lt 1
6119879
1 if 16119879 le 119905 lt
1
3119879
1
2if 13119879 le 119905 lt
1
2119879
minus1
2if 12119879 le 119905 lt
2
3119879
minus1 if 23119879 le 119905 lt
5
6119879
minus1
2if 56119879 le 119905 lt 119879
(A1)
Journal of Nonlinear Dynamics 7
Table 2 CNG consumer price detailed break up
S number Components of price Region I Region II
1
Cost of production(a) Cost of gas billed 3109 2840(b) Cost of compression 546 546total cost of production 3655 3386
2 (10ndash12) Retailer fixed profit 4386 4063
3
Taxes(a) GIDC 13 13(b) GST 21 cost of gas 6529 5964
19529 18964Total (1 + 2 + 3) 60465 56887
5 Consumer retail price (consumerwillingness to pay) 61 57
Its mean value about its period is zero Then by Fourierexpansion in place of (A1)
119886119896= 0
119887119896=1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)
(A2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962[1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)]2
= 025119860 (09208)
= 02302119860
(A3)
This force also lowered down the equilibrium price ascompared to harmonic force but raised up the triangular typeforce
B Trapezoidal Force
Thenext force is trapezoidal type force119879119898(119905) = 119879
119898(119905+119879) (see
Figure 8) given by
119879119898(119905) =
8119905
119879if 0 le 119905 lt 119879
8
1 if 1198798le 119905 lt
3119879
8
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt
7119879
8
8 (119905 minus 119879)
119879if 71198798le 119905 lt 119879
(B1)
since 1198860= 0 rArr 119879
119898= 0
Next the Fourier coefficients of (B1) are119886119896= 0
119887119896=16
12058721
1198962sin 119896120587
4
(B2)
0
1
TT8
minus1
3T8 5T8 7T8
Figure 8 Trapezoidal type force
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
256
1205874
infin
sum119896=1
1
1198966sin2119896120587
4
= 025119860 (13571)
= 03393119860
(B3)
Due to this force the equilibrium price has been raised up ascompared to hat type force
C Quadratic Force
The next force is quadratic type force 119876119888(119905) = 119876
119888(119905 + 119879) (see
Figure 9) given by
119876119888(119905) =
1 if 0 le 119905 lt 31198798
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt 119879
(C1)
with the same property 119876119888= 0 as 119886
0= 0 Then by Fourier
expansion in the place of (C1)
119886119896= 0
119887119896= (
2
119896120587+
8
12058721198962sin 119896120587
4)
(C2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962(2
119896120587+
8
12058721198962sin 119896120587
4)2
= 025119860 (15426)
= 03857119860
(C3)
It is observed that applying this external force the equilib-rium price has more raised up
All these results with conditional stable points are givenin Table 3
By applying a different force an increasedecrease inequilibrium price can be made
8 Journal of Nonlinear Dynamics
0
1
T
minus1
3T8 5T8
Figure 9 Quadratic type force
Table 3 Shift in price equilibrium by fast oscillation
Force typeSum
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962
Stabilitycondition at 120601 = 120587
Shift in priceEquilibrium Δ119901lowast
Sin 1 1205962 gt 2119892119897 025119860
Triangular 0658 1205962 gt 30396119892119897 0164119860
Linear hat 09208 1205962 gt 2172119892119897 02302119860
Trapezium 13571 1205962 gt 14736119892119897 03393119860
Quadratic 15426 1205962 gt 12967119892119897 03857119860
Rectangular 1645 1205962 gt 12159119892119897 0411119860
Conflict of Interests
The authors declare that there is no conflict of interestsregarding the publication of this paper
References
[1] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 1999
[2] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 2000
[3] J-P Bouchaud ldquoAn introduction to statistical financerdquo PhysicaA vol 313 no 1-2 pp 238ndash251 2002
[4] M G Daniels J D Farmer L Gillemot G Iori and E SmithldquoQuantitative model of price diffusion and market frictionbased on trading as a mechanistic random processrdquo PhysicalReview Letters vol 90 Article ID 108102 2003
[5] R Friedmann and W G Sanddorf-Kohle ldquoVolatility clusteringand nontrading days in Chinese stock marketsrdquo Journal ofEconomics and Business vol 54 no 2 pp 193ndash217 2002
[6] G Bonanno D Valenti and B Spagnolo ldquoMean escape time ina system with stochastic volatilityrdquo Physical Review E vol 75Article ID 016106 2007
[7] D Eliezer and I I Kogan ldquoScaling laws for the marketmicrostructure of the interdealer broker marketsrdquo SSRN eLi-brary 1998
[8] X Yiping R Chandramouli and C Cordeiro ldquoPrice dynamicsin competitive agile spectrum access marketsrdquo IEEE Journal onSelected Areas in Communications vol 25 no 3 pp 613ndash6212007
[9] DValenti B Spagnolo andG Bonanno ldquoHitting time distribu-tions in financial marketsrdquo Physica A vol 382 no 1 pp 311ndash3202007
[10] H Mizuta K Steiglitz and E Lirov ldquoEffects of price signalchoices on market stabilityrdquo Journal of Economic Behavior andOrganization vol 52 no 2 pp 235ndash251 2003
[11] G Bonanno D Valenti and B Spagnolo ldquoRole of noise ina market model with stochastic volatilityrdquo European PhysicalJournal B vol 53 no 3 pp 405ndash409 2006
[12] P L Kapitza ldquoDynamic stability of a pendulum with anoscillating point of suspensionrdquo Journal of Experimental andTheoretical Physics vol 21 pp 588ndash597 1951
[13] L D Landau and E M Lifshitz Mecanics PergamonPressButterworth Oxford UK 3rd edition 2005
[14] J A Hołyst and W Wojciechowski ldquoThe effect of Kapitzapendulum and price equilibriumrdquo Physica A vol 324 no 1-2pp 388ndash395 2003
[15] B Ahmad and S Borisenok ldquoControl of effective potentialminima for Kapitza oscillator by periodical kicking pulsesrdquoPhysics Letters A vol 373 no 7 pp 701ndash707 2009
[16] httpsupremecourtgovpkwebuser filesFileCONSTP33-34-2005pdf
[17] ldquoCRCP House Islamabadrdquo Islamabad Pakistan httpwwwcrcporgpk
International Journal of
AerospaceEngineeringHindawi Publishing Corporationhttpwwwhindawicom Volume 2014
RoboticsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Active and Passive Electronic Components
Control Scienceand Engineering
Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
International Journal of
RotatingMachinery
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporation httpwwwhindawicom
Journal ofEngineeringVolume 2014
Submit your manuscripts athttpwwwhindawicom
VLSI Design
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Shock and Vibration
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Civil EngineeringAdvances in
Acoustics and VibrationAdvances in
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Electrical and Computer Engineering
Journal of
Advances inOptoElectronics
Hindawi Publishing Corporation httpwwwhindawicom
Volume 2014
The Scientific World JournalHindawi Publishing Corporation httpwwwhindawicom Volume 2014
SensorsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Modelling amp Simulation in EngineeringHindawi Publishing Corporation httpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Chemical EngineeringInternational Journal of Antennas and
Propagation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Navigation and Observation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
DistributedSensor Networks
International Journal of
Journal of Nonlinear Dynamics 3
minus120587 120587
120601
00
Uef
fmgl
(a)
0minus120587 120587
120601
0
Uef
fmgl
(b)
Figure 2 Minimization of dimensionless effective potential energy function
Now the slow and fast part must be separately equal forfast part we simply put
120585 =infin
sum119896=1
(119886119896cos 119896120596119905 + 119887
119896sin 119896120596119905) (18)
Integrating (18) with initial condition 1205850= 0 the fast
component is
120585 =1
120596
infin
sum119896=1
1
119896(119886119896sin 119896120596119905 minus 119887
119896cos 119896120596119905) (19)
Using (3) the mean values of 120585 and 120585 are zero while 120601 and 120601are unaltered Then the mean values of (14) and (15) can begiven as
119901 = 120601
= 120601(20)
Hence 120601 describes the slow price and 120601 describes the rate ofslow price averaged over rapid oscillations
Next the mean values of 1205852 over the time interval [0 119879]are
1205852 =1
21205962
infin
sum119896=1
(1198862119896+ 1198872119896
1198962) (21)
Also 119865(120601) and its derivatives remain unaltered during thistime averaging Next time averaging of (17) will give afunction of 120601 only That is
120601 = 119865 (120601) +1
41205962
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)11986510158401015840(120601) (22)
or
= 120573([119863 minus 119878] (120601) +1
41205962
infin
sum119896=1
(1198862119896+ 1198872119896
1198962) [11986310158401015840minus 11987810158401015840] (120601))
(23)
It shows that after averaging the influence of fast periodicoscillations on the slow price component is also dependingon curvatures of demand and supply functions and thiseffect vanishes when both functions are linear Due to thisfast oscillation the averaged equilibrium price can be easilycalculated Expanding first term on right hand side of (23)into the power series around the value 119901lowast and consideringlinear part only we have
= 120573( [1198631015840(120601) minus 119878
1015840(120601)] (120601 minus 120601
lowast)
+1
41205962[11986310158401015840(120601) minus 119878
10158401015840(120601)]infin
sum119896=1
(1198862119896+ 1198872119896
1198962))
(24)
Following (11) at equilibrium price we must have = 0
0 = 120573( [1198631015840(120601) minus 119878
1015840(120601)] (120601 minus 120601
lowast)
+1
41205962[11986310158401015840(120601) minus 119878
10158401015840(120601)]infin
sum119896=1
(1198862119896+ 1198872119896
1198962))
(25)
consequently
120601 minus 120601lowast=1
4120596211986310158401015840 (120601) minus 11987810158401015840 (120601)
1198781015840 (120601) minus 1198631015840 (120601)
infin
sum119896=1
(1198862119896+ 1198872119896
1198962) (26)
The right hand side of (26) is a function of 120601 only Sinceafter averaging 120601 changes slightly that is 120601 asymp 120601 Also at
4 Journal of Nonlinear Dynamics
equilibrium 120601 is very near to 120601lowast while 119901lowast can be located farfrom 119901lowast Hence for good approximation we can write
119901lowast minus 119901lowast= Δ119901lowast=1
4120596211986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)
(27)
Equation (27) gives the shift of equilibrium price of themarket due to fast oscillations
This shift can increase the equilibrium price of a typicalmarket if
(a) the infinite sum increases(b) the frequency of small oscillation is small(c)
11986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)gt 0 (28)
In Kapitza method of averaging for arbitrary periodic forcethe increase in infinite sum will decrease the frequency ofoscillation at 120601 = 120587 To follow (28) we must suppose that1198631015840(119901) lt 0 11986310158401015840(119901) gt 0 1198781015840(119901) gt 0 and 11987810158401015840(119901) lt 0 Thenit follows that as price 119901(119905) increases the demand 119863(119901)decreases and 119878(119901) increases in a slow manner As a resultsaturation in demand and supply is established Hence byaveraging procedure the equilibrium price has shifted upChoose
11986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)= 1198622gt 0 (29)
Then (27) can be rewritten as
Δ119901lowast=
1
412059621198622
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)
= 025119860119878119896
(30)
where 119860 = 11986221205962
4 Shift of Market Equilibrium by ExternalArbitrary Periodic Force
In this section we will select some arbitrary periodic forcesand study the increase in equilibrium price by using (30)
41 Harmonic Force First we choose the harmonic force
119891 (119905) = sin120596119905 (31)
as external force (see Figure 3) Using (4) the Fouriercoefficient 119886
0= 0 indicates that the mean value of 119891(119905) about
its period 119879 = 2120587120596 is zero Next using (6) the other Fouriercoefficients for (31) are
119886119896= 0
119887119896=
0 119896 = 1
1 119896 = 1
(32)
1
05
0
minus05
minus1
2120587120587
t
1205874 1205872 31205874 51205874 31205872 71205874
f(t)
Figure 3 Sine type external force
Quantity
Pric
e
0
Equilibrium price due to external periodic forceEquilibrium price without external periodic force
D
Q
P1
P2
S
Figure 4 Change in equilibrium due to external force
Using these coefficients in (30) the old equilibrium price isshifted to new equilibrium price by [14]
Δ119901lowast= 025119860 (33)
This shift is illustrated in Figure 4
42 Triangular Force Next we apply periodical triangulartype force 119877
119904(119905) = 119877
119904(119905 + 119879)
119877119878(119905) =
4119905
119879if 0 le 119905 lt 119879
4
4
119879(119879
2minus 119905) if 119879
4le 119905 lt
3119879
4
4 (119905 minus 119879)
119879if 31198794le 119905 lt 119879
(34)
Journal of Nonlinear Dynamics 5
with the same property 119877119878= 0 (see Figure 5) Next using (6)
the other Fourier coefficients for (34) are
119886119896= 0
119887119896=
4
11989621205872[1 minus (minus1)
119896]
(35)
or
119887119896=
0 119896 is even8
11989621205872119896 is odd
(36)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
64
1205874
infin
sum119896=1
1
(2119896 minus 1)6
=16
12058741205876
960119860
= 0164119860
(37)
Here (37) gives the shift of new equilibrium price from theold one due to fast oscillation with triangular external forceThis increase is lower than the increase with harmonic force
43 Rectangular Force The next force is rectangular typeforce 119877
119897(119905) = 119877
119897(119905 + 119879) (see Figure 6) given by
119877119897(119905) =
1 0 le 119905 le119879
2
minus1119879
2le 119905 le 119879
(38)
with the same property 119877119897= 0
Next using (6) the other Fourier coefficients for (38) are
119886119896= 0
119887119896=
0 119896 is even4
119896120587119896 is odd
(39)
or
1198872119896minus1
=4
(2119896 minus 1) 120587 (40)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
16
1205872
infin
sum119896=1
1
(2119896 minus 1)4
= 025119860 (1645)
= 0411119860
(41)
Here (41) gives the shift of new equilibrium price for rect-angular force It has raised up the equilibrium price thanthe previous forces Hence by applying a different force anincreasedecrease in equilibrium price is possible
0
1
TT4 3T4
minus1
Figure 5 Triangular type force
0
1
TT2
minus1
Figure 6 Rectangular type force
5 Conclusions
A method similar to Kapitza method of averaging for anarbitrary periodic force is used in the dynamics of themarketThen another equilibrium price with an increase may bepossible Previously harmonic force was used to raise theequilibrium price of the market In this work an arbitraryperiodic force with zero mean is applied to raise it Now thisincrease can be controlled by varying the external arbitraryperiodic force On the same pattern when the governmentneeds money it announces an increase in the rates of existingtaxes or adds new taxes and when it wants to give relief topublic it decreases the rates of existing taxes or deletes sometaxes in the price of commodity
In September 2012 compressed natural gas (CNG) wasbeing sold at Rs 9253 per kg in region I Details are in Table 1[16]
In Table 1 if 119860 was gas price then some external factorswere involved and 119864 was the next price again price wasdecided by adding some factors (federal price compressioncost profit and taxes) and the consumer price was 119871 Here 119864and 119871 were new equilibrium prices with an increase
Next Consumer Rights Commission of Pakistan did notconsider it a justified price so they pursued the SupremeCourt of Pakistan who on October 26 2012 passed an orderdeclaring to implement the July 1 2012 prices That pricedetail is in Table 2 [17]
Then the consumer was paying Rs 61 instead of Rs9253 per kg in region I
6 Journal of Nonlinear Dynamics
Table 1 CNG consumer price detailed break up wef October 22 2012
S number Components Region I Region IIRsKg RsMMBtu RsKg RsMMBtu
119860Average well headpricecost of gas paid toexploration companies
1804 35887 92 1648 35887 92
119861Operating cost of gascompanies 114 2269 6 104 2269 6
119862Return on investment togas companies Otherincomes (net of prior year
1804 35887 92 1648 35887 92
119863 adjustment if any etc) minus053 minus1063 minus3 minus049 minus1063 minus3
119864 = 119860 to119863 Average prescribed price ofnatural gas 1951 38827 100 1783 38826 100
119865
Sale price of natural gas forCNG stations as advised byFederal Government underSection 8(3) of OGRAordinance includingGDScross-subsidization
3519 70032 38 3214 70002 38
119866Operating cost of gasstations 2080 11380 22 2080 45301 25
119867Profit of CNG stationowners 1119 22260 12 1059 23061 13
119868 GIDC 1325 26357 14 918 20000 11119869 GST (25 of price 119865 + 1) 1210 24069 13 1033 22500 12
119870Differential margin forregion II mdash 150 3267 2
119871Total CNG consumer price(119865 minus 119870) 9253 184098 100 8454 184131 100
0
1
TT6 T2
minus1
minus12
12
Figure 7 Hat type force
In Table 1 the equilibrium price was raised up by addingsome factors and in Table 2 it was lowered down by deletingsome factors So when the authority needs money it raisedup the prices and when it wants to give relieve to people itlowers down the prices
A number of more examples can be found Every con-sumer has to pay Rs 35 as ptv (Pakistan television) fee and tosupport Neelum Jhelum project they are bearing the cost ofdelay and inefficiency and are paying a surcharge of 10 paisa
per unit in their electricity bills Moreover different slabs ofusage units have different rates of billing
Appendices
Here some more periodic forces with zero mean are given
A Hat Force
The first force is rectangular hat type (see Figure 7) definedby
119871119888(119905) =
1
2if 0 le 119905 lt 1
6119879
1 if 16119879 le 119905 lt
1
3119879
1
2if 13119879 le 119905 lt
1
2119879
minus1
2if 12119879 le 119905 lt
2
3119879
minus1 if 23119879 le 119905 lt
5
6119879
minus1
2if 56119879 le 119905 lt 119879
(A1)
Journal of Nonlinear Dynamics 7
Table 2 CNG consumer price detailed break up
S number Components of price Region I Region II
1
Cost of production(a) Cost of gas billed 3109 2840(b) Cost of compression 546 546total cost of production 3655 3386
2 (10ndash12) Retailer fixed profit 4386 4063
3
Taxes(a) GIDC 13 13(b) GST 21 cost of gas 6529 5964
19529 18964Total (1 + 2 + 3) 60465 56887
5 Consumer retail price (consumerwillingness to pay) 61 57
Its mean value about its period is zero Then by Fourierexpansion in place of (A1)
119886119896= 0
119887119896=1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)
(A2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962[1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)]2
= 025119860 (09208)
= 02302119860
(A3)
This force also lowered down the equilibrium price ascompared to harmonic force but raised up the triangular typeforce
B Trapezoidal Force
Thenext force is trapezoidal type force119879119898(119905) = 119879
119898(119905+119879) (see
Figure 8) given by
119879119898(119905) =
8119905
119879if 0 le 119905 lt 119879
8
1 if 1198798le 119905 lt
3119879
8
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt
7119879
8
8 (119905 minus 119879)
119879if 71198798le 119905 lt 119879
(B1)
since 1198860= 0 rArr 119879
119898= 0
Next the Fourier coefficients of (B1) are119886119896= 0
119887119896=16
12058721
1198962sin 119896120587
4
(B2)
0
1
TT8
minus1
3T8 5T8 7T8
Figure 8 Trapezoidal type force
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
256
1205874
infin
sum119896=1
1
1198966sin2119896120587
4
= 025119860 (13571)
= 03393119860
(B3)
Due to this force the equilibrium price has been raised up ascompared to hat type force
C Quadratic Force
The next force is quadratic type force 119876119888(119905) = 119876
119888(119905 + 119879) (see
Figure 9) given by
119876119888(119905) =
1 if 0 le 119905 lt 31198798
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt 119879
(C1)
with the same property 119876119888= 0 as 119886
0= 0 Then by Fourier
expansion in the place of (C1)
119886119896= 0
119887119896= (
2
119896120587+
8
12058721198962sin 119896120587
4)
(C2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962(2
119896120587+
8
12058721198962sin 119896120587
4)2
= 025119860 (15426)
= 03857119860
(C3)
It is observed that applying this external force the equilib-rium price has more raised up
All these results with conditional stable points are givenin Table 3
By applying a different force an increasedecrease inequilibrium price can be made
8 Journal of Nonlinear Dynamics
0
1
T
minus1
3T8 5T8
Figure 9 Quadratic type force
Table 3 Shift in price equilibrium by fast oscillation
Force typeSum
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962
Stabilitycondition at 120601 = 120587
Shift in priceEquilibrium Δ119901lowast
Sin 1 1205962 gt 2119892119897 025119860
Triangular 0658 1205962 gt 30396119892119897 0164119860
Linear hat 09208 1205962 gt 2172119892119897 02302119860
Trapezium 13571 1205962 gt 14736119892119897 03393119860
Quadratic 15426 1205962 gt 12967119892119897 03857119860
Rectangular 1645 1205962 gt 12159119892119897 0411119860
Conflict of Interests
The authors declare that there is no conflict of interestsregarding the publication of this paper
References
[1] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 1999
[2] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 2000
[3] J-P Bouchaud ldquoAn introduction to statistical financerdquo PhysicaA vol 313 no 1-2 pp 238ndash251 2002
[4] M G Daniels J D Farmer L Gillemot G Iori and E SmithldquoQuantitative model of price diffusion and market frictionbased on trading as a mechanistic random processrdquo PhysicalReview Letters vol 90 Article ID 108102 2003
[5] R Friedmann and W G Sanddorf-Kohle ldquoVolatility clusteringand nontrading days in Chinese stock marketsrdquo Journal ofEconomics and Business vol 54 no 2 pp 193ndash217 2002
[6] G Bonanno D Valenti and B Spagnolo ldquoMean escape time ina system with stochastic volatilityrdquo Physical Review E vol 75Article ID 016106 2007
[7] D Eliezer and I I Kogan ldquoScaling laws for the marketmicrostructure of the interdealer broker marketsrdquo SSRN eLi-brary 1998
[8] X Yiping R Chandramouli and C Cordeiro ldquoPrice dynamicsin competitive agile spectrum access marketsrdquo IEEE Journal onSelected Areas in Communications vol 25 no 3 pp 613ndash6212007
[9] DValenti B Spagnolo andG Bonanno ldquoHitting time distribu-tions in financial marketsrdquo Physica A vol 382 no 1 pp 311ndash3202007
[10] H Mizuta K Steiglitz and E Lirov ldquoEffects of price signalchoices on market stabilityrdquo Journal of Economic Behavior andOrganization vol 52 no 2 pp 235ndash251 2003
[11] G Bonanno D Valenti and B Spagnolo ldquoRole of noise ina market model with stochastic volatilityrdquo European PhysicalJournal B vol 53 no 3 pp 405ndash409 2006
[12] P L Kapitza ldquoDynamic stability of a pendulum with anoscillating point of suspensionrdquo Journal of Experimental andTheoretical Physics vol 21 pp 588ndash597 1951
[13] L D Landau and E M Lifshitz Mecanics PergamonPressButterworth Oxford UK 3rd edition 2005
[14] J A Hołyst and W Wojciechowski ldquoThe effect of Kapitzapendulum and price equilibriumrdquo Physica A vol 324 no 1-2pp 388ndash395 2003
[15] B Ahmad and S Borisenok ldquoControl of effective potentialminima for Kapitza oscillator by periodical kicking pulsesrdquoPhysics Letters A vol 373 no 7 pp 701ndash707 2009
[16] httpsupremecourtgovpkwebuser filesFileCONSTP33-34-2005pdf
[17] ldquoCRCP House Islamabadrdquo Islamabad Pakistan httpwwwcrcporgpk
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Electrical and Computer Engineering
Journal of
Advances inOptoElectronics
Hindawi Publishing Corporation httpwwwhindawicom
Volume 2014
The Scientific World JournalHindawi Publishing Corporation httpwwwhindawicom Volume 2014
SensorsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Modelling amp Simulation in EngineeringHindawi Publishing Corporation httpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Chemical EngineeringInternational Journal of Antennas and
Propagation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Navigation and Observation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
DistributedSensor Networks
International Journal of
4 Journal of Nonlinear Dynamics
equilibrium 120601 is very near to 120601lowast while 119901lowast can be located farfrom 119901lowast Hence for good approximation we can write
119901lowast minus 119901lowast= Δ119901lowast=1
4120596211986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)
(27)
Equation (27) gives the shift of equilibrium price of themarket due to fast oscillations
This shift can increase the equilibrium price of a typicalmarket if
(a) the infinite sum increases(b) the frequency of small oscillation is small(c)
11986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)gt 0 (28)
In Kapitza method of averaging for arbitrary periodic forcethe increase in infinite sum will decrease the frequency ofoscillation at 120601 = 120587 To follow (28) we must suppose that1198631015840(119901) lt 0 11986310158401015840(119901) gt 0 1198781015840(119901) gt 0 and 11987810158401015840(119901) lt 0 Thenit follows that as price 119901(119905) increases the demand 119863(119901)decreases and 119878(119901) increases in a slow manner As a resultsaturation in demand and supply is established Hence byaveraging procedure the equilibrium price has shifted upChoose
11986310158401015840 (119901) minus 11987810158401015840 (119901)
1198781015840 (119901) minus 1198631015840 (119901)= 1198622gt 0 (29)
Then (27) can be rewritten as
Δ119901lowast=
1
412059621198622
infin
sum119896=1
(1198862119896+ 1198872119896
1198962)
= 025119860119878119896
(30)
where 119860 = 11986221205962
4 Shift of Market Equilibrium by ExternalArbitrary Periodic Force
In this section we will select some arbitrary periodic forcesand study the increase in equilibrium price by using (30)
41 Harmonic Force First we choose the harmonic force
119891 (119905) = sin120596119905 (31)
as external force (see Figure 3) Using (4) the Fouriercoefficient 119886
0= 0 indicates that the mean value of 119891(119905) about
its period 119879 = 2120587120596 is zero Next using (6) the other Fouriercoefficients for (31) are
119886119896= 0
119887119896=
0 119896 = 1
1 119896 = 1
(32)
1
05
0
minus05
minus1
2120587120587
t
1205874 1205872 31205874 51205874 31205872 71205874
f(t)
Figure 3 Sine type external force
Quantity
Pric
e
0
Equilibrium price due to external periodic forceEquilibrium price without external periodic force
D
Q
P1
P2
S
Figure 4 Change in equilibrium due to external force
Using these coefficients in (30) the old equilibrium price isshifted to new equilibrium price by [14]
Δ119901lowast= 025119860 (33)
This shift is illustrated in Figure 4
42 Triangular Force Next we apply periodical triangulartype force 119877
119904(119905) = 119877
119904(119905 + 119879)
119877119878(119905) =
4119905
119879if 0 le 119905 lt 119879
4
4
119879(119879
2minus 119905) if 119879
4le 119905 lt
3119879
4
4 (119905 minus 119879)
119879if 31198794le 119905 lt 119879
(34)
Journal of Nonlinear Dynamics 5
with the same property 119877119878= 0 (see Figure 5) Next using (6)
the other Fourier coefficients for (34) are
119886119896= 0
119887119896=
4
11989621205872[1 minus (minus1)
119896]
(35)
or
119887119896=
0 119896 is even8
11989621205872119896 is odd
(36)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
64
1205874
infin
sum119896=1
1
(2119896 minus 1)6
=16
12058741205876
960119860
= 0164119860
(37)
Here (37) gives the shift of new equilibrium price from theold one due to fast oscillation with triangular external forceThis increase is lower than the increase with harmonic force
43 Rectangular Force The next force is rectangular typeforce 119877
119897(119905) = 119877
119897(119905 + 119879) (see Figure 6) given by
119877119897(119905) =
1 0 le 119905 le119879
2
minus1119879
2le 119905 le 119879
(38)
with the same property 119877119897= 0
Next using (6) the other Fourier coefficients for (38) are
119886119896= 0
119887119896=
0 119896 is even4
119896120587119896 is odd
(39)
or
1198872119896minus1
=4
(2119896 minus 1) 120587 (40)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
16
1205872
infin
sum119896=1
1
(2119896 minus 1)4
= 025119860 (1645)
= 0411119860
(41)
Here (41) gives the shift of new equilibrium price for rect-angular force It has raised up the equilibrium price thanthe previous forces Hence by applying a different force anincreasedecrease in equilibrium price is possible
0
1
TT4 3T4
minus1
Figure 5 Triangular type force
0
1
TT2
minus1
Figure 6 Rectangular type force
5 Conclusions
A method similar to Kapitza method of averaging for anarbitrary periodic force is used in the dynamics of themarketThen another equilibrium price with an increase may bepossible Previously harmonic force was used to raise theequilibrium price of the market In this work an arbitraryperiodic force with zero mean is applied to raise it Now thisincrease can be controlled by varying the external arbitraryperiodic force On the same pattern when the governmentneeds money it announces an increase in the rates of existingtaxes or adds new taxes and when it wants to give relief topublic it decreases the rates of existing taxes or deletes sometaxes in the price of commodity
In September 2012 compressed natural gas (CNG) wasbeing sold at Rs 9253 per kg in region I Details are in Table 1[16]
In Table 1 if 119860 was gas price then some external factorswere involved and 119864 was the next price again price wasdecided by adding some factors (federal price compressioncost profit and taxes) and the consumer price was 119871 Here 119864and 119871 were new equilibrium prices with an increase
Next Consumer Rights Commission of Pakistan did notconsider it a justified price so they pursued the SupremeCourt of Pakistan who on October 26 2012 passed an orderdeclaring to implement the July 1 2012 prices That pricedetail is in Table 2 [17]
Then the consumer was paying Rs 61 instead of Rs9253 per kg in region I
6 Journal of Nonlinear Dynamics
Table 1 CNG consumer price detailed break up wef October 22 2012
S number Components Region I Region IIRsKg RsMMBtu RsKg RsMMBtu
119860Average well headpricecost of gas paid toexploration companies
1804 35887 92 1648 35887 92
119861Operating cost of gascompanies 114 2269 6 104 2269 6
119862Return on investment togas companies Otherincomes (net of prior year
1804 35887 92 1648 35887 92
119863 adjustment if any etc) minus053 minus1063 minus3 minus049 minus1063 minus3
119864 = 119860 to119863 Average prescribed price ofnatural gas 1951 38827 100 1783 38826 100
119865
Sale price of natural gas forCNG stations as advised byFederal Government underSection 8(3) of OGRAordinance includingGDScross-subsidization
3519 70032 38 3214 70002 38
119866Operating cost of gasstations 2080 11380 22 2080 45301 25
119867Profit of CNG stationowners 1119 22260 12 1059 23061 13
119868 GIDC 1325 26357 14 918 20000 11119869 GST (25 of price 119865 + 1) 1210 24069 13 1033 22500 12
119870Differential margin forregion II mdash 150 3267 2
119871Total CNG consumer price(119865 minus 119870) 9253 184098 100 8454 184131 100
0
1
TT6 T2
minus1
minus12
12
Figure 7 Hat type force
In Table 1 the equilibrium price was raised up by addingsome factors and in Table 2 it was lowered down by deletingsome factors So when the authority needs money it raisedup the prices and when it wants to give relieve to people itlowers down the prices
A number of more examples can be found Every con-sumer has to pay Rs 35 as ptv (Pakistan television) fee and tosupport Neelum Jhelum project they are bearing the cost ofdelay and inefficiency and are paying a surcharge of 10 paisa
per unit in their electricity bills Moreover different slabs ofusage units have different rates of billing
Appendices
Here some more periodic forces with zero mean are given
A Hat Force
The first force is rectangular hat type (see Figure 7) definedby
119871119888(119905) =
1
2if 0 le 119905 lt 1
6119879
1 if 16119879 le 119905 lt
1
3119879
1
2if 13119879 le 119905 lt
1
2119879
minus1
2if 12119879 le 119905 lt
2
3119879
minus1 if 23119879 le 119905 lt
5
6119879
minus1
2if 56119879 le 119905 lt 119879
(A1)
Journal of Nonlinear Dynamics 7
Table 2 CNG consumer price detailed break up
S number Components of price Region I Region II
1
Cost of production(a) Cost of gas billed 3109 2840(b) Cost of compression 546 546total cost of production 3655 3386
2 (10ndash12) Retailer fixed profit 4386 4063
3
Taxes(a) GIDC 13 13(b) GST 21 cost of gas 6529 5964
19529 18964Total (1 + 2 + 3) 60465 56887
5 Consumer retail price (consumerwillingness to pay) 61 57
Its mean value about its period is zero Then by Fourierexpansion in place of (A1)
119886119896= 0
119887119896=1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)
(A2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962[1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)]2
= 025119860 (09208)
= 02302119860
(A3)
This force also lowered down the equilibrium price ascompared to harmonic force but raised up the triangular typeforce
B Trapezoidal Force
Thenext force is trapezoidal type force119879119898(119905) = 119879
119898(119905+119879) (see
Figure 8) given by
119879119898(119905) =
8119905
119879if 0 le 119905 lt 119879
8
1 if 1198798le 119905 lt
3119879
8
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt
7119879
8
8 (119905 minus 119879)
119879if 71198798le 119905 lt 119879
(B1)
since 1198860= 0 rArr 119879
119898= 0
Next the Fourier coefficients of (B1) are119886119896= 0
119887119896=16
12058721
1198962sin 119896120587
4
(B2)
0
1
TT8
minus1
3T8 5T8 7T8
Figure 8 Trapezoidal type force
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
256
1205874
infin
sum119896=1
1
1198966sin2119896120587
4
= 025119860 (13571)
= 03393119860
(B3)
Due to this force the equilibrium price has been raised up ascompared to hat type force
C Quadratic Force
The next force is quadratic type force 119876119888(119905) = 119876
119888(119905 + 119879) (see
Figure 9) given by
119876119888(119905) =
1 if 0 le 119905 lt 31198798
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt 119879
(C1)
with the same property 119876119888= 0 as 119886
0= 0 Then by Fourier
expansion in the place of (C1)
119886119896= 0
119887119896= (
2
119896120587+
8
12058721198962sin 119896120587
4)
(C2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962(2
119896120587+
8
12058721198962sin 119896120587
4)2
= 025119860 (15426)
= 03857119860
(C3)
It is observed that applying this external force the equilib-rium price has more raised up
All these results with conditional stable points are givenin Table 3
By applying a different force an increasedecrease inequilibrium price can be made
8 Journal of Nonlinear Dynamics
0
1
T
minus1
3T8 5T8
Figure 9 Quadratic type force
Table 3 Shift in price equilibrium by fast oscillation
Force typeSum
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962
Stabilitycondition at 120601 = 120587
Shift in priceEquilibrium Δ119901lowast
Sin 1 1205962 gt 2119892119897 025119860
Triangular 0658 1205962 gt 30396119892119897 0164119860
Linear hat 09208 1205962 gt 2172119892119897 02302119860
Trapezium 13571 1205962 gt 14736119892119897 03393119860
Quadratic 15426 1205962 gt 12967119892119897 03857119860
Rectangular 1645 1205962 gt 12159119892119897 0411119860
Conflict of Interests
The authors declare that there is no conflict of interestsregarding the publication of this paper
References
[1] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 1999
[2] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 2000
[3] J-P Bouchaud ldquoAn introduction to statistical financerdquo PhysicaA vol 313 no 1-2 pp 238ndash251 2002
[4] M G Daniels J D Farmer L Gillemot G Iori and E SmithldquoQuantitative model of price diffusion and market frictionbased on trading as a mechanistic random processrdquo PhysicalReview Letters vol 90 Article ID 108102 2003
[5] R Friedmann and W G Sanddorf-Kohle ldquoVolatility clusteringand nontrading days in Chinese stock marketsrdquo Journal ofEconomics and Business vol 54 no 2 pp 193ndash217 2002
[6] G Bonanno D Valenti and B Spagnolo ldquoMean escape time ina system with stochastic volatilityrdquo Physical Review E vol 75Article ID 016106 2007
[7] D Eliezer and I I Kogan ldquoScaling laws for the marketmicrostructure of the interdealer broker marketsrdquo SSRN eLi-brary 1998
[8] X Yiping R Chandramouli and C Cordeiro ldquoPrice dynamicsin competitive agile spectrum access marketsrdquo IEEE Journal onSelected Areas in Communications vol 25 no 3 pp 613ndash6212007
[9] DValenti B Spagnolo andG Bonanno ldquoHitting time distribu-tions in financial marketsrdquo Physica A vol 382 no 1 pp 311ndash3202007
[10] H Mizuta K Steiglitz and E Lirov ldquoEffects of price signalchoices on market stabilityrdquo Journal of Economic Behavior andOrganization vol 52 no 2 pp 235ndash251 2003
[11] G Bonanno D Valenti and B Spagnolo ldquoRole of noise ina market model with stochastic volatilityrdquo European PhysicalJournal B vol 53 no 3 pp 405ndash409 2006
[12] P L Kapitza ldquoDynamic stability of a pendulum with anoscillating point of suspensionrdquo Journal of Experimental andTheoretical Physics vol 21 pp 588ndash597 1951
[13] L D Landau and E M Lifshitz Mecanics PergamonPressButterworth Oxford UK 3rd edition 2005
[14] J A Hołyst and W Wojciechowski ldquoThe effect of Kapitzapendulum and price equilibriumrdquo Physica A vol 324 no 1-2pp 388ndash395 2003
[15] B Ahmad and S Borisenok ldquoControl of effective potentialminima for Kapitza oscillator by periodical kicking pulsesrdquoPhysics Letters A vol 373 no 7 pp 701ndash707 2009
[16] httpsupremecourtgovpkwebuser filesFileCONSTP33-34-2005pdf
[17] ldquoCRCP House Islamabadrdquo Islamabad Pakistan httpwwwcrcporgpk
International Journal of
AerospaceEngineeringHindawi Publishing Corporationhttpwwwhindawicom Volume 2014
RoboticsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Active and Passive Electronic Components
Control Scienceand Engineering
Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
International Journal of
RotatingMachinery
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporation httpwwwhindawicom
Journal ofEngineeringVolume 2014
Submit your manuscripts athttpwwwhindawicom
VLSI Design
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Shock and Vibration
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Civil EngineeringAdvances in
Acoustics and VibrationAdvances in
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Electrical and Computer Engineering
Journal of
Advances inOptoElectronics
Hindawi Publishing Corporation httpwwwhindawicom
Volume 2014
The Scientific World JournalHindawi Publishing Corporation httpwwwhindawicom Volume 2014
SensorsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Modelling amp Simulation in EngineeringHindawi Publishing Corporation httpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Chemical EngineeringInternational Journal of Antennas and
Propagation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Navigation and Observation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
DistributedSensor Networks
International Journal of
Journal of Nonlinear Dynamics 5
with the same property 119877119878= 0 (see Figure 5) Next using (6)
the other Fourier coefficients for (34) are
119886119896= 0
119887119896=
4
11989621205872[1 minus (minus1)
119896]
(35)
or
119887119896=
0 119896 is even8
11989621205872119896 is odd
(36)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
64
1205874
infin
sum119896=1
1
(2119896 minus 1)6
=16
12058741205876
960119860
= 0164119860
(37)
Here (37) gives the shift of new equilibrium price from theold one due to fast oscillation with triangular external forceThis increase is lower than the increase with harmonic force
43 Rectangular Force The next force is rectangular typeforce 119877
119897(119905) = 119877
119897(119905 + 119879) (see Figure 6) given by
119877119897(119905) =
1 0 le 119905 le119879
2
minus1119879
2le 119905 le 119879
(38)
with the same property 119877119897= 0
Next using (6) the other Fourier coefficients for (38) are
119886119896= 0
119887119896=
0 119896 is even4
119896120587119896 is odd
(39)
or
1198872119896minus1
=4
(2119896 minus 1) 120587 (40)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
16
1205872
infin
sum119896=1
1
(2119896 minus 1)4
= 025119860 (1645)
= 0411119860
(41)
Here (41) gives the shift of new equilibrium price for rect-angular force It has raised up the equilibrium price thanthe previous forces Hence by applying a different force anincreasedecrease in equilibrium price is possible
0
1
TT4 3T4
minus1
Figure 5 Triangular type force
0
1
TT2
minus1
Figure 6 Rectangular type force
5 Conclusions
A method similar to Kapitza method of averaging for anarbitrary periodic force is used in the dynamics of themarketThen another equilibrium price with an increase may bepossible Previously harmonic force was used to raise theequilibrium price of the market In this work an arbitraryperiodic force with zero mean is applied to raise it Now thisincrease can be controlled by varying the external arbitraryperiodic force On the same pattern when the governmentneeds money it announces an increase in the rates of existingtaxes or adds new taxes and when it wants to give relief topublic it decreases the rates of existing taxes or deletes sometaxes in the price of commodity
In September 2012 compressed natural gas (CNG) wasbeing sold at Rs 9253 per kg in region I Details are in Table 1[16]
In Table 1 if 119860 was gas price then some external factorswere involved and 119864 was the next price again price wasdecided by adding some factors (federal price compressioncost profit and taxes) and the consumer price was 119871 Here 119864and 119871 were new equilibrium prices with an increase
Next Consumer Rights Commission of Pakistan did notconsider it a justified price so they pursued the SupremeCourt of Pakistan who on October 26 2012 passed an orderdeclaring to implement the July 1 2012 prices That pricedetail is in Table 2 [17]
Then the consumer was paying Rs 61 instead of Rs9253 per kg in region I
6 Journal of Nonlinear Dynamics
Table 1 CNG consumer price detailed break up wef October 22 2012
S number Components Region I Region IIRsKg RsMMBtu RsKg RsMMBtu
119860Average well headpricecost of gas paid toexploration companies
1804 35887 92 1648 35887 92
119861Operating cost of gascompanies 114 2269 6 104 2269 6
119862Return on investment togas companies Otherincomes (net of prior year
1804 35887 92 1648 35887 92
119863 adjustment if any etc) minus053 minus1063 minus3 minus049 minus1063 minus3
119864 = 119860 to119863 Average prescribed price ofnatural gas 1951 38827 100 1783 38826 100
119865
Sale price of natural gas forCNG stations as advised byFederal Government underSection 8(3) of OGRAordinance includingGDScross-subsidization
3519 70032 38 3214 70002 38
119866Operating cost of gasstations 2080 11380 22 2080 45301 25
119867Profit of CNG stationowners 1119 22260 12 1059 23061 13
119868 GIDC 1325 26357 14 918 20000 11119869 GST (25 of price 119865 + 1) 1210 24069 13 1033 22500 12
119870Differential margin forregion II mdash 150 3267 2
119871Total CNG consumer price(119865 minus 119870) 9253 184098 100 8454 184131 100
0
1
TT6 T2
minus1
minus12
12
Figure 7 Hat type force
In Table 1 the equilibrium price was raised up by addingsome factors and in Table 2 it was lowered down by deletingsome factors So when the authority needs money it raisedup the prices and when it wants to give relieve to people itlowers down the prices
A number of more examples can be found Every con-sumer has to pay Rs 35 as ptv (Pakistan television) fee and tosupport Neelum Jhelum project they are bearing the cost ofdelay and inefficiency and are paying a surcharge of 10 paisa
per unit in their electricity bills Moreover different slabs ofusage units have different rates of billing
Appendices
Here some more periodic forces with zero mean are given
A Hat Force
The first force is rectangular hat type (see Figure 7) definedby
119871119888(119905) =
1
2if 0 le 119905 lt 1
6119879
1 if 16119879 le 119905 lt
1
3119879
1
2if 13119879 le 119905 lt
1
2119879
minus1
2if 12119879 le 119905 lt
2
3119879
minus1 if 23119879 le 119905 lt
5
6119879
minus1
2if 56119879 le 119905 lt 119879
(A1)
Journal of Nonlinear Dynamics 7
Table 2 CNG consumer price detailed break up
S number Components of price Region I Region II
1
Cost of production(a) Cost of gas billed 3109 2840(b) Cost of compression 546 546total cost of production 3655 3386
2 (10ndash12) Retailer fixed profit 4386 4063
3
Taxes(a) GIDC 13 13(b) GST 21 cost of gas 6529 5964
19529 18964Total (1 + 2 + 3) 60465 56887
5 Consumer retail price (consumerwillingness to pay) 61 57
Its mean value about its period is zero Then by Fourierexpansion in place of (A1)
119886119896= 0
119887119896=1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)
(A2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962[1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)]2
= 025119860 (09208)
= 02302119860
(A3)
This force also lowered down the equilibrium price ascompared to harmonic force but raised up the triangular typeforce
B Trapezoidal Force
Thenext force is trapezoidal type force119879119898(119905) = 119879
119898(119905+119879) (see
Figure 8) given by
119879119898(119905) =
8119905
119879if 0 le 119905 lt 119879
8
1 if 1198798le 119905 lt
3119879
8
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt
7119879
8
8 (119905 minus 119879)
119879if 71198798le 119905 lt 119879
(B1)
since 1198860= 0 rArr 119879
119898= 0
Next the Fourier coefficients of (B1) are119886119896= 0
119887119896=16
12058721
1198962sin 119896120587
4
(B2)
0
1
TT8
minus1
3T8 5T8 7T8
Figure 8 Trapezoidal type force
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
256
1205874
infin
sum119896=1
1
1198966sin2119896120587
4
= 025119860 (13571)
= 03393119860
(B3)
Due to this force the equilibrium price has been raised up ascompared to hat type force
C Quadratic Force
The next force is quadratic type force 119876119888(119905) = 119876
119888(119905 + 119879) (see
Figure 9) given by
119876119888(119905) =
1 if 0 le 119905 lt 31198798
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt 119879
(C1)
with the same property 119876119888= 0 as 119886
0= 0 Then by Fourier
expansion in the place of (C1)
119886119896= 0
119887119896= (
2
119896120587+
8
12058721198962sin 119896120587
4)
(C2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962(2
119896120587+
8
12058721198962sin 119896120587
4)2
= 025119860 (15426)
= 03857119860
(C3)
It is observed that applying this external force the equilib-rium price has more raised up
All these results with conditional stable points are givenin Table 3
By applying a different force an increasedecrease inequilibrium price can be made
8 Journal of Nonlinear Dynamics
0
1
T
minus1
3T8 5T8
Figure 9 Quadratic type force
Table 3 Shift in price equilibrium by fast oscillation
Force typeSum
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962
Stabilitycondition at 120601 = 120587
Shift in priceEquilibrium Δ119901lowast
Sin 1 1205962 gt 2119892119897 025119860
Triangular 0658 1205962 gt 30396119892119897 0164119860
Linear hat 09208 1205962 gt 2172119892119897 02302119860
Trapezium 13571 1205962 gt 14736119892119897 03393119860
Quadratic 15426 1205962 gt 12967119892119897 03857119860
Rectangular 1645 1205962 gt 12159119892119897 0411119860
Conflict of Interests
The authors declare that there is no conflict of interestsregarding the publication of this paper
References
[1] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 1999
[2] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 2000
[3] J-P Bouchaud ldquoAn introduction to statistical financerdquo PhysicaA vol 313 no 1-2 pp 238ndash251 2002
[4] M G Daniels J D Farmer L Gillemot G Iori and E SmithldquoQuantitative model of price diffusion and market frictionbased on trading as a mechanistic random processrdquo PhysicalReview Letters vol 90 Article ID 108102 2003
[5] R Friedmann and W G Sanddorf-Kohle ldquoVolatility clusteringand nontrading days in Chinese stock marketsrdquo Journal ofEconomics and Business vol 54 no 2 pp 193ndash217 2002
[6] G Bonanno D Valenti and B Spagnolo ldquoMean escape time ina system with stochastic volatilityrdquo Physical Review E vol 75Article ID 016106 2007
[7] D Eliezer and I I Kogan ldquoScaling laws for the marketmicrostructure of the interdealer broker marketsrdquo SSRN eLi-brary 1998
[8] X Yiping R Chandramouli and C Cordeiro ldquoPrice dynamicsin competitive agile spectrum access marketsrdquo IEEE Journal onSelected Areas in Communications vol 25 no 3 pp 613ndash6212007
[9] DValenti B Spagnolo andG Bonanno ldquoHitting time distribu-tions in financial marketsrdquo Physica A vol 382 no 1 pp 311ndash3202007
[10] H Mizuta K Steiglitz and E Lirov ldquoEffects of price signalchoices on market stabilityrdquo Journal of Economic Behavior andOrganization vol 52 no 2 pp 235ndash251 2003
[11] G Bonanno D Valenti and B Spagnolo ldquoRole of noise ina market model with stochastic volatilityrdquo European PhysicalJournal B vol 53 no 3 pp 405ndash409 2006
[12] P L Kapitza ldquoDynamic stability of a pendulum with anoscillating point of suspensionrdquo Journal of Experimental andTheoretical Physics vol 21 pp 588ndash597 1951
[13] L D Landau and E M Lifshitz Mecanics PergamonPressButterworth Oxford UK 3rd edition 2005
[14] J A Hołyst and W Wojciechowski ldquoThe effect of Kapitzapendulum and price equilibriumrdquo Physica A vol 324 no 1-2pp 388ndash395 2003
[15] B Ahmad and S Borisenok ldquoControl of effective potentialminima for Kapitza oscillator by periodical kicking pulsesrdquoPhysics Letters A vol 373 no 7 pp 701ndash707 2009
[16] httpsupremecourtgovpkwebuser filesFileCONSTP33-34-2005pdf
[17] ldquoCRCP House Islamabadrdquo Islamabad Pakistan httpwwwcrcporgpk
International Journal of
AerospaceEngineeringHindawi Publishing Corporationhttpwwwhindawicom Volume 2014
RoboticsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Active and Passive Electronic Components
Control Scienceand Engineering
Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
International Journal of
RotatingMachinery
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporation httpwwwhindawicom
Journal ofEngineeringVolume 2014
Submit your manuscripts athttpwwwhindawicom
VLSI Design
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Shock and Vibration
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Civil EngineeringAdvances in
Acoustics and VibrationAdvances in
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Electrical and Computer Engineering
Journal of
Advances inOptoElectronics
Hindawi Publishing Corporation httpwwwhindawicom
Volume 2014
The Scientific World JournalHindawi Publishing Corporation httpwwwhindawicom Volume 2014
SensorsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Modelling amp Simulation in EngineeringHindawi Publishing Corporation httpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Chemical EngineeringInternational Journal of Antennas and
Propagation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Navigation and Observation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
DistributedSensor Networks
International Journal of
6 Journal of Nonlinear Dynamics
Table 1 CNG consumer price detailed break up wef October 22 2012
S number Components Region I Region IIRsKg RsMMBtu RsKg RsMMBtu
119860Average well headpricecost of gas paid toexploration companies
1804 35887 92 1648 35887 92
119861Operating cost of gascompanies 114 2269 6 104 2269 6
119862Return on investment togas companies Otherincomes (net of prior year
1804 35887 92 1648 35887 92
119863 adjustment if any etc) minus053 minus1063 minus3 minus049 minus1063 minus3
119864 = 119860 to119863 Average prescribed price ofnatural gas 1951 38827 100 1783 38826 100
119865
Sale price of natural gas forCNG stations as advised byFederal Government underSection 8(3) of OGRAordinance includingGDScross-subsidization
3519 70032 38 3214 70002 38
119866Operating cost of gasstations 2080 11380 22 2080 45301 25
119867Profit of CNG stationowners 1119 22260 12 1059 23061 13
119868 GIDC 1325 26357 14 918 20000 11119869 GST (25 of price 119865 + 1) 1210 24069 13 1033 22500 12
119870Differential margin forregion II mdash 150 3267 2
119871Total CNG consumer price(119865 minus 119870) 9253 184098 100 8454 184131 100
0
1
TT6 T2
minus1
minus12
12
Figure 7 Hat type force
In Table 1 the equilibrium price was raised up by addingsome factors and in Table 2 it was lowered down by deletingsome factors So when the authority needs money it raisedup the prices and when it wants to give relieve to people itlowers down the prices
A number of more examples can be found Every con-sumer has to pay Rs 35 as ptv (Pakistan television) fee and tosupport Neelum Jhelum project they are bearing the cost ofdelay and inefficiency and are paying a surcharge of 10 paisa
per unit in their electricity bills Moreover different slabs ofusage units have different rates of billing
Appendices
Here some more periodic forces with zero mean are given
A Hat Force
The first force is rectangular hat type (see Figure 7) definedby
119871119888(119905) =
1
2if 0 le 119905 lt 1
6119879
1 if 16119879 le 119905 lt
1
3119879
1
2if 13119879 le 119905 lt
1
2119879
minus1
2if 12119879 le 119905 lt
2
3119879
minus1 if 23119879 le 119905 lt
5
6119879
minus1
2if 56119879 le 119905 lt 119879
(A1)
Journal of Nonlinear Dynamics 7
Table 2 CNG consumer price detailed break up
S number Components of price Region I Region II
1
Cost of production(a) Cost of gas billed 3109 2840(b) Cost of compression 546 546total cost of production 3655 3386
2 (10ndash12) Retailer fixed profit 4386 4063
3
Taxes(a) GIDC 13 13(b) GST 21 cost of gas 6529 5964
19529 18964Total (1 + 2 + 3) 60465 56887
5 Consumer retail price (consumerwillingness to pay) 61 57
Its mean value about its period is zero Then by Fourierexpansion in place of (A1)
119886119896= 0
119887119896=1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)
(A2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962[1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)]2
= 025119860 (09208)
= 02302119860
(A3)
This force also lowered down the equilibrium price ascompared to harmonic force but raised up the triangular typeforce
B Trapezoidal Force
Thenext force is trapezoidal type force119879119898(119905) = 119879
119898(119905+119879) (see
Figure 8) given by
119879119898(119905) =
8119905
119879if 0 le 119905 lt 119879
8
1 if 1198798le 119905 lt
3119879
8
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt
7119879
8
8 (119905 minus 119879)
119879if 71198798le 119905 lt 119879
(B1)
since 1198860= 0 rArr 119879
119898= 0
Next the Fourier coefficients of (B1) are119886119896= 0
119887119896=16
12058721
1198962sin 119896120587
4
(B2)
0
1
TT8
minus1
3T8 5T8 7T8
Figure 8 Trapezoidal type force
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
256
1205874
infin
sum119896=1
1
1198966sin2119896120587
4
= 025119860 (13571)
= 03393119860
(B3)
Due to this force the equilibrium price has been raised up ascompared to hat type force
C Quadratic Force
The next force is quadratic type force 119876119888(119905) = 119876
119888(119905 + 119879) (see
Figure 9) given by
119876119888(119905) =
1 if 0 le 119905 lt 31198798
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt 119879
(C1)
with the same property 119876119888= 0 as 119886
0= 0 Then by Fourier
expansion in the place of (C1)
119886119896= 0
119887119896= (
2
119896120587+
8
12058721198962sin 119896120587
4)
(C2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962(2
119896120587+
8
12058721198962sin 119896120587
4)2
= 025119860 (15426)
= 03857119860
(C3)
It is observed that applying this external force the equilib-rium price has more raised up
All these results with conditional stable points are givenin Table 3
By applying a different force an increasedecrease inequilibrium price can be made
8 Journal of Nonlinear Dynamics
0
1
T
minus1
3T8 5T8
Figure 9 Quadratic type force
Table 3 Shift in price equilibrium by fast oscillation
Force typeSum
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962
Stabilitycondition at 120601 = 120587
Shift in priceEquilibrium Δ119901lowast
Sin 1 1205962 gt 2119892119897 025119860
Triangular 0658 1205962 gt 30396119892119897 0164119860
Linear hat 09208 1205962 gt 2172119892119897 02302119860
Trapezium 13571 1205962 gt 14736119892119897 03393119860
Quadratic 15426 1205962 gt 12967119892119897 03857119860
Rectangular 1645 1205962 gt 12159119892119897 0411119860
Conflict of Interests
The authors declare that there is no conflict of interestsregarding the publication of this paper
References
[1] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 1999
[2] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 2000
[3] J-P Bouchaud ldquoAn introduction to statistical financerdquo PhysicaA vol 313 no 1-2 pp 238ndash251 2002
[4] M G Daniels J D Farmer L Gillemot G Iori and E SmithldquoQuantitative model of price diffusion and market frictionbased on trading as a mechanistic random processrdquo PhysicalReview Letters vol 90 Article ID 108102 2003
[5] R Friedmann and W G Sanddorf-Kohle ldquoVolatility clusteringand nontrading days in Chinese stock marketsrdquo Journal ofEconomics and Business vol 54 no 2 pp 193ndash217 2002
[6] G Bonanno D Valenti and B Spagnolo ldquoMean escape time ina system with stochastic volatilityrdquo Physical Review E vol 75Article ID 016106 2007
[7] D Eliezer and I I Kogan ldquoScaling laws for the marketmicrostructure of the interdealer broker marketsrdquo SSRN eLi-brary 1998
[8] X Yiping R Chandramouli and C Cordeiro ldquoPrice dynamicsin competitive agile spectrum access marketsrdquo IEEE Journal onSelected Areas in Communications vol 25 no 3 pp 613ndash6212007
[9] DValenti B Spagnolo andG Bonanno ldquoHitting time distribu-tions in financial marketsrdquo Physica A vol 382 no 1 pp 311ndash3202007
[10] H Mizuta K Steiglitz and E Lirov ldquoEffects of price signalchoices on market stabilityrdquo Journal of Economic Behavior andOrganization vol 52 no 2 pp 235ndash251 2003
[11] G Bonanno D Valenti and B Spagnolo ldquoRole of noise ina market model with stochastic volatilityrdquo European PhysicalJournal B vol 53 no 3 pp 405ndash409 2006
[12] P L Kapitza ldquoDynamic stability of a pendulum with anoscillating point of suspensionrdquo Journal of Experimental andTheoretical Physics vol 21 pp 588ndash597 1951
[13] L D Landau and E M Lifshitz Mecanics PergamonPressButterworth Oxford UK 3rd edition 2005
[14] J A Hołyst and W Wojciechowski ldquoThe effect of Kapitzapendulum and price equilibriumrdquo Physica A vol 324 no 1-2pp 388ndash395 2003
[15] B Ahmad and S Borisenok ldquoControl of effective potentialminima for Kapitza oscillator by periodical kicking pulsesrdquoPhysics Letters A vol 373 no 7 pp 701ndash707 2009
[16] httpsupremecourtgovpkwebuser filesFileCONSTP33-34-2005pdf
[17] ldquoCRCP House Islamabadrdquo Islamabad Pakistan httpwwwcrcporgpk
International Journal of
AerospaceEngineeringHindawi Publishing Corporationhttpwwwhindawicom Volume 2014
RoboticsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Active and Passive Electronic Components
Control Scienceand Engineering
Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
International Journal of
RotatingMachinery
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporation httpwwwhindawicom
Journal ofEngineeringVolume 2014
Submit your manuscripts athttpwwwhindawicom
VLSI Design
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Shock and Vibration
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Civil EngineeringAdvances in
Acoustics and VibrationAdvances in
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Electrical and Computer Engineering
Journal of
Advances inOptoElectronics
Hindawi Publishing Corporation httpwwwhindawicom
Volume 2014
The Scientific World JournalHindawi Publishing Corporation httpwwwhindawicom Volume 2014
SensorsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Modelling amp Simulation in EngineeringHindawi Publishing Corporation httpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Chemical EngineeringInternational Journal of Antennas and
Propagation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Navigation and Observation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
DistributedSensor Networks
International Journal of
Journal of Nonlinear Dynamics 7
Table 2 CNG consumer price detailed break up
S number Components of price Region I Region II
1
Cost of production(a) Cost of gas billed 3109 2840(b) Cost of compression 546 546total cost of production 3655 3386
2 (10ndash12) Retailer fixed profit 4386 4063
3
Taxes(a) GIDC 13 13(b) GST 21 cost of gas 6529 5964
19529 18964Total (1 + 2 + 3) 60465 56887
5 Consumer retail price (consumerwillingness to pay) 61 57
Its mean value about its period is zero Then by Fourierexpansion in place of (A1)
119886119896= 0
119887119896=1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)
(A2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962[1
119896120587(1 minus cos 119896120587 + 2 cos 119896120587
3)]2
= 025119860 (09208)
= 02302119860
(A3)
This force also lowered down the equilibrium price ascompared to harmonic force but raised up the triangular typeforce
B Trapezoidal Force
Thenext force is trapezoidal type force119879119898(119905) = 119879
119898(119905+119879) (see
Figure 8) given by
119879119898(119905) =
8119905
119879if 0 le 119905 lt 119879
8
1 if 1198798le 119905 lt
3119879
8
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt
7119879
8
8 (119905 minus 119879)
119879if 71198798le 119905 lt 119879
(B1)
since 1198860= 0 rArr 119879
119898= 0
Next the Fourier coefficients of (B1) are119886119896= 0
119887119896=16
12058721
1198962sin 119896120587
4
(B2)
0
1
TT8
minus1
3T8 5T8 7T8
Figure 8 Trapezoidal type force
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
256
1205874
infin
sum119896=1
1
1198966sin2119896120587
4
= 025119860 (13571)
= 03393119860
(B3)
Due to this force the equilibrium price has been raised up ascompared to hat type force
C Quadratic Force
The next force is quadratic type force 119876119888(119905) = 119876
119888(119905 + 119879) (see
Figure 9) given by
119876119888(119905) =
1 if 0 le 119905 lt 31198798
8
119879(119879
2minus 119905) if 3119879
8le 119905 lt
5119879
8
minus1 if 51198798le 119905 lt 119879
(C1)
with the same property 119876119888= 0 as 119886
0= 0 Then by Fourier
expansion in the place of (C1)
119886119896= 0
119887119896= (
2
119896120587+
8
12058721198962sin 119896120587
4)
(C2)
Using these coefficients in (30) the shift in equilibrium priceis
Δ119901lowast= 025119860
infin
sum119896=1
1
1198962(2
119896120587+
8
12058721198962sin 119896120587
4)2
= 025119860 (15426)
= 03857119860
(C3)
It is observed that applying this external force the equilib-rium price has more raised up
All these results with conditional stable points are givenin Table 3
By applying a different force an increasedecrease inequilibrium price can be made
8 Journal of Nonlinear Dynamics
0
1
T
minus1
3T8 5T8
Figure 9 Quadratic type force
Table 3 Shift in price equilibrium by fast oscillation
Force typeSum
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962
Stabilitycondition at 120601 = 120587
Shift in priceEquilibrium Δ119901lowast
Sin 1 1205962 gt 2119892119897 025119860
Triangular 0658 1205962 gt 30396119892119897 0164119860
Linear hat 09208 1205962 gt 2172119892119897 02302119860
Trapezium 13571 1205962 gt 14736119892119897 03393119860
Quadratic 15426 1205962 gt 12967119892119897 03857119860
Rectangular 1645 1205962 gt 12159119892119897 0411119860
Conflict of Interests
The authors declare that there is no conflict of interestsregarding the publication of this paper
References
[1] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 1999
[2] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 2000
[3] J-P Bouchaud ldquoAn introduction to statistical financerdquo PhysicaA vol 313 no 1-2 pp 238ndash251 2002
[4] M G Daniels J D Farmer L Gillemot G Iori and E SmithldquoQuantitative model of price diffusion and market frictionbased on trading as a mechanistic random processrdquo PhysicalReview Letters vol 90 Article ID 108102 2003
[5] R Friedmann and W G Sanddorf-Kohle ldquoVolatility clusteringand nontrading days in Chinese stock marketsrdquo Journal ofEconomics and Business vol 54 no 2 pp 193ndash217 2002
[6] G Bonanno D Valenti and B Spagnolo ldquoMean escape time ina system with stochastic volatilityrdquo Physical Review E vol 75Article ID 016106 2007
[7] D Eliezer and I I Kogan ldquoScaling laws for the marketmicrostructure of the interdealer broker marketsrdquo SSRN eLi-brary 1998
[8] X Yiping R Chandramouli and C Cordeiro ldquoPrice dynamicsin competitive agile spectrum access marketsrdquo IEEE Journal onSelected Areas in Communications vol 25 no 3 pp 613ndash6212007
[9] DValenti B Spagnolo andG Bonanno ldquoHitting time distribu-tions in financial marketsrdquo Physica A vol 382 no 1 pp 311ndash3202007
[10] H Mizuta K Steiglitz and E Lirov ldquoEffects of price signalchoices on market stabilityrdquo Journal of Economic Behavior andOrganization vol 52 no 2 pp 235ndash251 2003
[11] G Bonanno D Valenti and B Spagnolo ldquoRole of noise ina market model with stochastic volatilityrdquo European PhysicalJournal B vol 53 no 3 pp 405ndash409 2006
[12] P L Kapitza ldquoDynamic stability of a pendulum with anoscillating point of suspensionrdquo Journal of Experimental andTheoretical Physics vol 21 pp 588ndash597 1951
[13] L D Landau and E M Lifshitz Mecanics PergamonPressButterworth Oxford UK 3rd edition 2005
[14] J A Hołyst and W Wojciechowski ldquoThe effect of Kapitzapendulum and price equilibriumrdquo Physica A vol 324 no 1-2pp 388ndash395 2003
[15] B Ahmad and S Borisenok ldquoControl of effective potentialminima for Kapitza oscillator by periodical kicking pulsesrdquoPhysics Letters A vol 373 no 7 pp 701ndash707 2009
[16] httpsupremecourtgovpkwebuser filesFileCONSTP33-34-2005pdf
[17] ldquoCRCP House Islamabadrdquo Islamabad Pakistan httpwwwcrcporgpk
International Journal of
AerospaceEngineeringHindawi Publishing Corporationhttpwwwhindawicom Volume 2014
RoboticsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Active and Passive Electronic Components
Control Scienceand Engineering
Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
International Journal of
RotatingMachinery
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporation httpwwwhindawicom
Journal ofEngineeringVolume 2014
Submit your manuscripts athttpwwwhindawicom
VLSI Design
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Shock and Vibration
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Civil EngineeringAdvances in
Acoustics and VibrationAdvances in
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Electrical and Computer Engineering
Journal of
Advances inOptoElectronics
Hindawi Publishing Corporation httpwwwhindawicom
Volume 2014
The Scientific World JournalHindawi Publishing Corporation httpwwwhindawicom Volume 2014
SensorsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Modelling amp Simulation in EngineeringHindawi Publishing Corporation httpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Chemical EngineeringInternational Journal of Antennas and
Propagation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Navigation and Observation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
DistributedSensor Networks
International Journal of
8 Journal of Nonlinear Dynamics
0
1
T
minus1
3T8 5T8
Figure 9 Quadratic type force
Table 3 Shift in price equilibrium by fast oscillation
Force typeSum
infin
sum119896=1
(1198862119896+ 1198872119896)
1198962
Stabilitycondition at 120601 = 120587
Shift in priceEquilibrium Δ119901lowast
Sin 1 1205962 gt 2119892119897 025119860
Triangular 0658 1205962 gt 30396119892119897 0164119860
Linear hat 09208 1205962 gt 2172119892119897 02302119860
Trapezium 13571 1205962 gt 14736119892119897 03393119860
Quadratic 15426 1205962 gt 12967119892119897 03857119860
Rectangular 1645 1205962 gt 12159119892119897 0411119860
Conflict of Interests
The authors declare that there is no conflict of interestsregarding the publication of this paper
References
[1] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 1999
[2] R N Mantegna and H E Stanley An Introduction to Econo-physics Correlations and Complexity in Finance CambridgeUniversity Press Cambridge UK 2000
[3] J-P Bouchaud ldquoAn introduction to statistical financerdquo PhysicaA vol 313 no 1-2 pp 238ndash251 2002
[4] M G Daniels J D Farmer L Gillemot G Iori and E SmithldquoQuantitative model of price diffusion and market frictionbased on trading as a mechanistic random processrdquo PhysicalReview Letters vol 90 Article ID 108102 2003
[5] R Friedmann and W G Sanddorf-Kohle ldquoVolatility clusteringand nontrading days in Chinese stock marketsrdquo Journal ofEconomics and Business vol 54 no 2 pp 193ndash217 2002
[6] G Bonanno D Valenti and B Spagnolo ldquoMean escape time ina system with stochastic volatilityrdquo Physical Review E vol 75Article ID 016106 2007
[7] D Eliezer and I I Kogan ldquoScaling laws for the marketmicrostructure of the interdealer broker marketsrdquo SSRN eLi-brary 1998
[8] X Yiping R Chandramouli and C Cordeiro ldquoPrice dynamicsin competitive agile spectrum access marketsrdquo IEEE Journal onSelected Areas in Communications vol 25 no 3 pp 613ndash6212007
[9] DValenti B Spagnolo andG Bonanno ldquoHitting time distribu-tions in financial marketsrdquo Physica A vol 382 no 1 pp 311ndash3202007
[10] H Mizuta K Steiglitz and E Lirov ldquoEffects of price signalchoices on market stabilityrdquo Journal of Economic Behavior andOrganization vol 52 no 2 pp 235ndash251 2003
[11] G Bonanno D Valenti and B Spagnolo ldquoRole of noise ina market model with stochastic volatilityrdquo European PhysicalJournal B vol 53 no 3 pp 405ndash409 2006
[12] P L Kapitza ldquoDynamic stability of a pendulum with anoscillating point of suspensionrdquo Journal of Experimental andTheoretical Physics vol 21 pp 588ndash597 1951
[13] L D Landau and E M Lifshitz Mecanics PergamonPressButterworth Oxford UK 3rd edition 2005
[14] J A Hołyst and W Wojciechowski ldquoThe effect of Kapitzapendulum and price equilibriumrdquo Physica A vol 324 no 1-2pp 388ndash395 2003
[15] B Ahmad and S Borisenok ldquoControl of effective potentialminima for Kapitza oscillator by periodical kicking pulsesrdquoPhysics Letters A vol 373 no 7 pp 701ndash707 2009
[16] httpsupremecourtgovpkwebuser filesFileCONSTP33-34-2005pdf
[17] ldquoCRCP House Islamabadrdquo Islamabad Pakistan httpwwwcrcporgpk
International Journal of
AerospaceEngineeringHindawi Publishing Corporationhttpwwwhindawicom Volume 2014
RoboticsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Active and Passive Electronic Components
Control Scienceand Engineering
Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
International Journal of
RotatingMachinery
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporation httpwwwhindawicom
Journal ofEngineeringVolume 2014
Submit your manuscripts athttpwwwhindawicom
VLSI Design
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Shock and Vibration
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Civil EngineeringAdvances in
Acoustics and VibrationAdvances in
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Electrical and Computer Engineering
Journal of
Advances inOptoElectronics
Hindawi Publishing Corporation httpwwwhindawicom
Volume 2014
The Scientific World JournalHindawi Publishing Corporation httpwwwhindawicom Volume 2014
SensorsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Modelling amp Simulation in EngineeringHindawi Publishing Corporation httpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Chemical EngineeringInternational Journal of Antennas and
Propagation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Navigation and Observation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
DistributedSensor Networks
International Journal of
International Journal of
AerospaceEngineeringHindawi Publishing Corporationhttpwwwhindawicom Volume 2014
RoboticsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Active and Passive Electronic Components
Control Scienceand Engineering
Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
International Journal of
RotatingMachinery
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporation httpwwwhindawicom
Journal ofEngineeringVolume 2014
Submit your manuscripts athttpwwwhindawicom
VLSI Design
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Shock and Vibration
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Civil EngineeringAdvances in
Acoustics and VibrationAdvances in
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Electrical and Computer Engineering
Journal of
Advances inOptoElectronics
Hindawi Publishing Corporation httpwwwhindawicom
Volume 2014
The Scientific World JournalHindawi Publishing Corporation httpwwwhindawicom Volume 2014
SensorsJournal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Modelling amp Simulation in EngineeringHindawi Publishing Corporation httpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Chemical EngineeringInternational Journal of Antennas and
Propagation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
Navigation and Observation
International Journal of
Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014
DistributedSensor Networks
International Journal of