Dynamical analysis of a Cournot duopoly model | ||
| Journal of the Egyptian Mathematical Society | ||
| Volume 24, Issue 4, 2016, Pages 681-686 PDF (596.02 K) | ||
| DOI: 10.1016/j.joems.2016.03.005 | ||
| Author | ||
| M. F. Elettreby1, 2 | ||
| 1Mathematics Department, Faculty of Science, King Khalid University, Abha 9004, Saudi Arabia | ||
| 2b Mathematics Department, Faculty of Science, Mansoura University, Mansoura 35516, Egypt | ||
| Abstract | ||
| In this paper, two different mechanisms are used to study a homogeneous Cournot duopoly in a market characterized by the downward sloping and concave price function. Two firms, which have constant marginal costs, use adaptive, low-rationality mechanisms to adjust their produc- tion levels toward equilibrium. In particular, the stability of the equilibrium for two different mechanisms is studied. However, complex dynamics arise, especially when the reaction coefficient increases. Finally, we compare the obtained results of the two models. | ||
| Keywords | ||
| Cournot model; Bounded rationality; Equilibrium solutions; Asymptotic stability; Bifurcation; Chaos | ||
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