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Multistability and complex dynamics in a simple discrete economic model

Author

Listed:
  • Peng, Mingshu
  • Jiang, Zhonghao
  • Jiang, Xiaoxia
  • Hu, Jiping
  • Qu, Youli

Abstract

In this paper, we will propose a generalized Cournot duopoly model with Z2 symmetry. We demonstrate that cost functions incorporating an interfirm externality lead to a system of couple one-dimensional maps. In the situation where agents take turns, we find in an analytic way that there coexist multiple unstable/stable period-2 cycles or synchronized/asynchronized periodic orbits. Coupling one-dimension chaos can be observed.

Suggested Citation

  • Peng, Mingshu & Jiang, Zhonghao & Jiang, Xiaoxia & Hu, Jiping & Qu, Youli, 2009. "Multistability and complex dynamics in a simple discrete economic model," Chaos, Solitons & Fractals, Elsevier, vol. 41(2), pages 671-687.
    • Handle: RePEc:eee:chsofr:v:41:y:2009:i:2:p:671-687
    DOI: 10.1016/j.chaos.2008.02.040
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    References listed on IDEAS

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    1. Rand, David, 1978. "Exotic phenomena in games and duopoly models," Journal of Mathematical Economics, Elsevier, vol. 5(2), pages 173-184, September.
    2. Furth, Dave, 1986. "Stability and instability in oligopoly," Journal of Economic Theory, Elsevier, vol. 40(2), pages 197-228, December.
    3. Nabih Agiza, Hamdy & Italo Bischi, Gian & Kopel, Michael, 1999. "Multistability in a dynamic Cournot game with three oligopolists," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 51(1), pages 63-90.
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    Cited by:

    1. A. A. Elsadany & A. M. Awad, 2016. "Dynamical analysis and chaos control in a heterogeneous Kopel duopoly game," Indian Journal of Pure and Applied Mathematics, Springer, vol. 47(4), pages 617-639, December.

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