Typical bifurcation scenario in a three-region identical new economic geography model

We study global dynamics of the New Economic Geography model which de- scribes spatial distribution of industrial activity in the long run across three identical regions depending on the balancing of agglomeration and dispersion forces. It is dened by a two-dimensional piecewise smooth map depending on four parameters. Based on the numerical evidence we discuss typical bifurca- tion scenarios observed in the model: starting from the symmetric xed point (related to equal distribution of the industrial activity in all the three regions) two dierent scenario are realized depending on whether the transportation cost parameter is increased or decreased. Emergence of the Wada basins of coexist- ing attractors leading to the so-called nal state sensitivity is discussed, as well as nal bifurcation of the chaotic attractor.