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Delay Cournot Duopoly Game with Gradient Adjustment: Berezowski Transition from a Discrete Model to a Continuous Model

Author

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  • Akio Matsumoto

    (Department of Economics, Chuo University, 742-1, Higashi-Nakano, Hachioji, Tokyo 192-0393, Japan)

  • Ferenc Szidarovszky

    (Department of Mathematics, Corvinus University, Fovám tér 8, 1093 Budapest, Hungary)

  • Keiko Nakayama

    (Department of Economics, Chukyo University, 101-2, Yagoto Honmachi, Showa, Hagoya 466-8666, Japan)

Abstract

This paper investigates the asymptotical behavior of the equilibrium of linear classical duopolies by reconsidering the two-delay model with two different positive delays. In a two-dimensional analysis, the stability switching curves were first analytically determined. Numerical studies verified and illustrated the theoretical results. In the sensitivity analysis it was demonstrated that the inertia coefficient has a twofold effect: enlarges the stability region as well as simplifies the complicated dynamics with period-halving cascade. In contrary, the adjustment speed contracts the stability region and complicates simple dynamics with period-doubling bifurcation. In addition, for various values of τ 1 and τ 2 , a wide variety of dynamics appears ranging from simple cycle via a Hopf bifurcation to chaotic oscillations.

Suggested Citation

  • Akio Matsumoto & Ferenc Szidarovszky & Keiko Nakayama, 2020. "Delay Cournot Duopoly Game with Gradient Adjustment: Berezowski Transition from a Discrete Model to a Continuous Model," Mathematics, MDPI, vol. 9(1), pages 1-19, December.
    • Handle: RePEc:gam:jmathe:v:9:y:2020:i:1:p:32-:d:468104
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    References listed on IDEAS

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    1. Gori, Luca & Guerrini, Luca & Sodini, Mauro, 2015. "A continuous time Cournot duopoly with delays," Chaos, Solitons & Fractals, Elsevier, vol. 79(C), pages 166-177.
    2. Bischi, Gian-Italo & Stefanini, Luciano & Gardini, Laura, 1998. "Synchronization, intermittency and critical curves in a duopoly game," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 44(6), pages 559-585.
    3. Akio Matsumoto & Ferenc Szidarovszky, 2018. "Dynamic Oligopolies with Time Delays," Springer Books, Springer, number 978-981-13-1786-6, December.
    4. Matsumoto, Akio & Szidarovszky, Ferenc, 2014. "Discrete and continuous dynamics in nonlinear monopolies," Applied Mathematics and Computation, Elsevier, vol. 232(C), pages 632-642.
    5. Howroyd, T. D. & Russell, A. M., 1984. "Cournot oligopoly models with time delays," Journal of Mathematical Economics, Elsevier, vol. 13(2), pages 97-103, October.
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