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Dynamics of Hotelling triopoly model with bounded rationality

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  • Peng, Yu
  • Lu, Qian
  • Wu, Xue
  • Zhao, Yueru
  • Xiao, Yue

Abstract

It is devoted to introduce and research a triopoly Hotelling model with a triangular market in this paper. Based on bounded rationality, a three-dimensional discrete dynamical system is formulated. The complex dynamics which occur in the process of chaotic evolution have been investigated. The solution of Nash equilibrium gives rise to complicated phenomena as some parameters of the model are varied. Some numerical simulations are used to portray such chaotic behavior. Furthermore, proper control scheme is applied to keep the system from instability and chaos, which is also supported by some simulations.

Suggested Citation

  • Peng, Yu & Lu, Qian & Wu, Xue & Zhao, Yueru & Xiao, Yue, 2020. "Dynamics of Hotelling triopoly model with bounded rationality," Applied Mathematics and Computation, Elsevier, vol. 373(C).
    • Handle: RePEc:eee:apmaco:v:373:y:2020:i:c:s0096300319310197
    DOI: 10.1016/j.amc.2019.125027
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    3. Peng, Yu & Xiao, Yue & Lu, Qian & Wu, Xue & Zhao, Yueru, 2020. "Chaotic dynamics in Cournot duopoly model with bounded rationality based on relative profit delegation maximization," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 560(C).

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