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Cooperation in a dynamical adjustment of duopoly game with incomplete information

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  • Ding, Zhanwen
  • Shi, Guiping

Abstract

In the output competition of Cournot game, the adjustment of output is considered under the circumstances that participants have incomplete information. In this paper, two strategies with output’s adjustment are mainly discussed: the tit-for-tat strategy and the tit-for-tat strategy with cooperative intention and their dynamic systems, respectively. The result shows that the tit-for-tat strategy may lead to the cooperation of them, but the stability of adjustment system is sensitive to the parameters; while the tit-for-tat strategy with cooperative intention can make the Pareto Optimality stable within the parameters’ certain scope.

Suggested Citation

  • Ding, Zhanwen & Shi, Guiping, 2009. "Cooperation in a dynamical adjustment of duopoly game with incomplete information," Chaos, Solitons & Fractals, Elsevier, vol. 42(2), pages 989-993.
    • Handle: RePEc:eee:chsofr:v:42:y:2009:i:2:p:989-993
    DOI: 10.1016/j.chaos.2009.02.027
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    References listed on IDEAS

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    Cited by:

    1. Ren, Jing & Sun, Hao & Xu, Genjiu & Hou, Dongshuang, 2020. "Prediction on the competitive outcome of an enterprise under the adjustment mechanism," Applied Mathematics and Computation, Elsevier, vol. 372(C).
    2. S. S. Askar & A. Al-khedhairi, 2019. "Cournot Duopoly Games: Models and Investigations," Mathematics, MDPI, vol. 7(11), pages 1-15, November.
    3. Askar, S.S. & Alshamrani, Ahmad M. & Alnowibet, K., 2016. "The arising of cooperation in Cournot duopoly games," Applied Mathematics and Computation, Elsevier, vol. 273(C), pages 535-542.
    4. S. S. Askar, 2020. "Duopolistic Stackelberg game: investigation of complex dynamics and chaos control," Operational Research, Springer, vol. 20(3), pages 1685-1699, September.
    5. Askar, S.S. & Alnowibet, K., 2016. "Cooperation versus noncooperation: Cournot duopolistic game based on delay and time-dependent parameters," Chaos, Solitons & Fractals, Elsevier, vol. 91(C), pages 580-584.
    6. Lin, Hai & Yang, Dong-Ping & Shuai, J.W., 2011. "Cooperation among mobile individuals with payoff expectations in the spatial prisoner’s dilemma game," Chaos, Solitons & Fractals, Elsevier, vol. 44(1), pages 153-159.
    7. Arranz Sombría, M. Rosa, 2011. "Cooperación en modelos de Cournot con información incompleta/Cooperation in Cournot’s Models with Incomplete Information," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 397(18á)-39, Abril.
    8. Askar, S.S., 2018. "Tripoly Stackelberg game model: One leader versus two followers," Applied Mathematics and Computation, Elsevier, vol. 328(C), pages 301-311.

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