Advanced Search
MyIDEAS: Login

Controlling Chaos Through Local Knowledge

Contents:

Author Info

  • Ahmad Naimzada

    () (Department of Quantitative Methods, University Bicocca, Milan, Italy)

  • Fabio Tramontana

    () (Università Politecnica delle Marche & Dipartimento di Economia e Metodi Quantitativi, Università di Urbino)

Abstract

We propose an duopoly game where quantity-setting firms have incomplete information about the demand function. In each time step, they solve a profit maximization problem assuming a linear local approximation of the demand function. In particular, we construct an example using the well known duopoly Puu's model with isoelastic demand function and constant marginal costs. An explicit form of the dynamical system that describes the time evolution of the duopoly game with boundedly rational players is given. The main result is the global stability of the system.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_08_10.pdf
File Function: First version, 2008
Download Restriction: no

Bibliographic Info

Paper provided by University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini in its series Working Papers with number 0810.

as in new window
Length: 21 pages
Date of creation: 2008
Date of revision: 2008
Handle: RePEc:urb:wpaper:08_10

Contact details of provider:
Web page: http://www.econ.uniurb.it/
More information through EDIRC

Related research

Keywords: Cournot duopoly; incomplete information; isoelastic demand function; time evolution; boundedly rational players.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Tramontana, Fabio, 2010. "Heterogeneous duopoly with isoelastic demand function," Economic Modelling, Elsevier, vol. 27(1), pages 350-357, January.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:urb:wpaper:08_10

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmela Nicoletti).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.