Abstract
In this paper we study the effects of constraints on the dynamics of an adaptive segregation model introduced by Bischi and Merlone (2011) [3]. The model is described by a two dimensional piecewise smooth dynamical system in discrete time. It models the dynamics of entry and exit of two populations into a system, whose members have a limited tolerance about the presence of individuals of the other group. The constraints are given by the upper limits for the number of individuals of a population that are allowed to enter the system. They represent possible exogenous controls imposed by an authority in order to regulate the system. Using analytical, geometric and numerical methods, we investigate the border collision bifurcations generated by these constraints assuming that the two groups have similar characteristics and have the same level of tolerance toward the members of the other group. We also discuss the policy implications of the constraints to avoid segregation.