IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-030-12169-3_2.html
   My bibliography  Save this book chapter

Complexity in a Bertrand Duopoly Game with Heterogeneous Players and Differentiated Goods

In: Economic and Financial Challenges for Eastern Europe

Author

Listed:
  • Georges Sarafopoulos

    (Democritus University of Thrace)

  • Kosmas Papadopoulos

    (Democritus University of Thrace)

Abstract

In this paper we investigate the dynamics of a nonlinear discrete-time Bertrand duopoly game with differentiated goods. The players have heterogeneous expectations and the game is modeled with a system of two difference equations. Existence and stability of equilibria of this system are studied. We show that the model gives more complex chaotic and unpredictable trajectories as a consequence of change in the parameter of horizontal product differentiation. If this parameter is varied, the stability of Nash equilibrium is lost through period doubling bifurcations. The chaotic features are justified numerically via computing Lyapunov numbers and sensitive dependence on initial conditions.

Suggested Citation

  • Georges Sarafopoulos & Kosmas Papadopoulos, 2019. "Complexity in a Bertrand Duopoly Game with Heterogeneous Players and Differentiated Goods," Springer Proceedings in Business and Economics, in: Nicos Sykianakis & Persefoni Polychronidou & Anastasios Karasavvoglou (ed.), Economic and Financial Challenges for Eastern Europe, pages 15-26, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-12169-3_2
    DOI: 10.1007/978-3-030-12169-3_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-030-12169-3_2. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.