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Dynamic Cournot duopoly games with nonlinear demand function

Author

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  • Askar, S.S.
  • Alshamrani, Ahmad M.
  • Alnowibet, K.

Abstract

In this paper, dynamic duopolistic Cournot models are investigated with discrete time scales under the assumption of unknown inverse demand function and linear cost. With this motivation, we consider different types of models: bounded rational duopoly, Puu’s duopoly, bounded rational duopoly with delay, and bounded rational multi-team model. In these models, the firms use two important adjustment mechanism, the bounded rationality and Puu’s approach, to update their quantity in each period. The locally asymptotic stability of the fixed point of each model is investigated and complex dynamic characteristics including period doubling bifurcation, strang attractors and chaotic phenomena are also discussed. Numerical simulations are carried out to show such complex behavior of the four models and to point out the impact of the models’ parameters on the stability of the fixed points.

Suggested Citation

  • Askar, S.S. & Alshamrani, Ahmad M. & Alnowibet, K., 2015. "Dynamic Cournot duopoly games with nonlinear demand function," Applied Mathematics and Computation, Elsevier, vol. 259(C), pages 427-437.
    • Handle: RePEc:eee:apmaco:v:259:y:2015:i:c:p:427-437
    DOI: 10.1016/j.amc.2015.02.072
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Villena, Marcelo J. & Araneda, Axel A., 2017. "Dynamics and stability in retail competition," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 134(C), pages 37-53.
    2. S. S. Askar & A. Al-khedhairi, 2019. "Investigations of Nonlinear Triopoly Models with Different Mechanisms," Complexity, Hindawi, vol. 2019, pages 1-15, December.
    3. Sameh Askar, 2021. "Complex Investigations of a Piecewise-Smooth Remanufacturing Bertrand Duopoly Game," Mathematics, MDPI, vol. 9(20), pages 1-13, October.
    4. S. S. Askar & A. Al-khedhairi, 2019. "Analysis of a Four-Firm Competition Based on a Generalized Bounded Rationality and Different Mechanisms," Complexity, Hindawi, vol. 2019, pages 1-12, May.
    5. Agliari, A. & Naimzada, A.K. & Pecora, N., 2016. "Nonlinear dynamics of a Cournot duopoly game with differentiated products," Applied Mathematics and Computation, Elsevier, vol. 281(C), pages 1-15.
    6. Shi, Lian & Sheng, Zhaohan & Xu, Feng, 2015. "The dynamics of competition in remanufacturing: A stability analysis," Economic Modelling, Elsevier, vol. 50(C), pages 245-253.
    7. Chen, Xingli & Zhou, Jianheng, 2021. "The complexity analysis and chaos control in omni-channel supply chain with consumer migration and advertising cost sharing," Chaos, Solitons & Fractals, Elsevier, vol. 146(C).
    8. Yu Yu & Weisheng Yu, 2019. "The Complexion of Multi-period Stackelberg Triopoly Game with Bounded Rationality," Computational Economics, Springer;Society for Computational Economics, vol. 53(1), pages 457-478, January.
    9. S. S. Askar, 2020. "Duopolistic Stackelberg game: investigation of complex dynamics and chaos control," Operational Research, Springer, vol. 20(3), pages 1685-1699, September.
    10. S. S. Askar & A. Al-khedhairi, 2019. "Cournot Duopoly Games: Models and Investigations," Mathematics, MDPI, vol. 7(11), pages 1-15, November.
    11. Askar, S.S. & Al-khedhairi, A., 2020. "The dynamics of a business game: A 2D-piecewise smooth nonlinear map," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 537(C).
    12. Askar, S.S. & Alnowibet, K., 2016. "Nonlinear oligopolistic game with isoelastic demand function: Rationality and local monopolistic approximation," Chaos, Solitons & Fractals, Elsevier, vol. 84(C), pages 15-22.

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