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The dynamics of a triopoly Cournot game when the competitors operate under capacity constraints

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  • Puu, Tönu
  • Marín, Manuel Ruíz

Abstract

This article considers Cournot oligopoly with three competitors, given an iso-elastic demand function, and cost functions that asymptotically go to infinity when capacity limits are approached. It is shown that for some parameter values (capacity limits) the Cournot equilibrium point loses stability through a Neimark-Sacker bifurcation. In addition global bifurcation scenarios are simulated numerically, and some are illustrated through Arnol’d tongues in the parameter plane.

Suggested Citation

  • Puu, Tönu & Marín, Manuel Ruíz, 2006. "The dynamics of a triopoly Cournot game when the competitors operate under capacity constraints," Chaos, Solitons & Fractals, Elsevier, vol. 28(2), pages 403-413.
    • Handle: RePEc:eee:chsofr:v:28:y:2006:i:2:p:403-413
    DOI: 10.1016/j.chaos.2005.05.034
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    References listed on IDEAS

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    1. Agliari, Anna & Gardini, Laura & Puu, Tönu, 2005. "Some global bifurcations related to the appearance of closed invariant curves," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 68(3), pages 201-219.
    2. Rand, David, 1978. "Exotic phenomena in games and duopoly models," Journal of Mathematical Economics, Elsevier, vol. 5(2), pages 173-184, September.
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    Cited by:

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    6. Cánovas, Jose S. & Panchuk, Anastasiia & Puu, Tönu, 2015. "Asymptotic dynamics of a piecewise smooth map modelling a competitive market," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 117(C), pages 20-38.
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