We present a numerical study of a three-level laser model that includes a saturable absorber. The theory models the laser as a lumped element. This assumption is valid as long as the laser pulses are much longer than the cavity. The model is intended to be somewhat representative of an erbium-doped fiber laser without trying to mimic the operating parameters of such a laser too closely. As expected, the presence of the saturable absorber causes the laser to be unstable under certain operating conditions. The question of stability is explored by examining small perturbations of the steady-state solutions of the rate equations. We find that the predictions of this stability analysis are in excellent agreement with the behavior of the solutions of the full time-dependent rate equations. Another result of this analysis is the realization that under certain conditions the laser may pass from pulsed to stable operation simply by raising the pump power.