In this paper, we consider the dynamics of induced map
2f of a given pointwise periodic homeomorphism
f:X→X of a compact metric space
X. First, we show that the topological entropy of
2f is zero, i.e.
htop(2f)=0 and that the set of almost periodic points coincides with the set of uniformly recurrent points, i.e.
AP(2f)=UR(2f). Furthermore, we prove that inside any infinite
ω-limit set
ω2f(A) there is a unique minimal set and this minimal set is an adding machine. As a consequence,
(2X,2f) has no Devaney chaotic subsystems. In contrast to these rigidity properties, we obtain some results with chaotic flavor. In fact, we prove the following dichotomy, the hyperspace system
(2X,2f) is either equicontinuous or choatic with respect to Li-Yorke chaos and
ω-chaos. It is shown that the later case occurs if and only if
R(2f)∖AP(2f)=∅. This enables us to provide simple examples of pointwise periodic homeomorphisms with chaotic induced systems.