Global Behavior of the Difference Equation xn+1=(p+xn-1)/(qxn+xn-1)

We study the following difference equation xn+1=(p+xn-1)/(qxn+xn-1), n=0,1,…, where p,q∈(0,+∞) and the initial conditions x-1,x0∈(0,+∞). We show that every positive solution of the above equation either converges to a finite limit or to a two cycle, which confirms that the Conjecture 6.10.4 proposed by Kulenović and Ladas (2002) is true.