Consequences of path-dependent supply side hysteresis on the market equilibrium are illustrated. Supply is only a subsystem of the entire market with its forcing variable (price) being endogenous from the perspective of the entire market. This results in feedbacks on the equilibrium of price and...

Hysteresis in economics is up to now usually based on a representation of a system with only a single input variable, which has a persistent effect on an economic outcome (i.e. the output variable). However, in general there is more than one factor influencing economic decision problems, why the...