Analysis of a duopoly game with delayed bounded rationality.
type: Item
instance of: scholarly article
title: Analysis of a duopoly game with delayed bounded rationality.
zbMATH Open document ID: 1102.91021
DOI: 10.1016/S0096-3003(02)00143-1
author: M. T. Yassen
author: H. N. Agiza
published in: Applied Mathematics and Computation
publication date: 2003-09-09T00:00:00Z
review text: A dynamic of Cournot duopoly game is analyzed, where players use different production methods and choose their quantities with bounded rationality. A dynamic of nonlinear Cournot duopoly game is analyzed, where players choose quantities with delayed bounded rationality and similar methods production. The equilibria of the corresponding discrete dynamic systems are investigated. The stability conditions of Nash equilibrium under a local adjustment process are studied. The stability od Nash equilibrium, as some parameters of the model are varied, gives rise to complex dynamics such as cycles of higher order and chaos. We show that firms using delayed bounded rationality have a higher chance of reaching Nash equilibrium. Numerical simulations are used to show bifurcations diagrams, stability regions and chaos.
reviewed by: Tadeusz Radzik
Mathematics Subject Classification ID: 91A26
Mathematics Subject Classification ID: 90C33
zbMATH DE Number: 1978009
zbMATH Keywords: duopoly game
zbMATH Keywords: delayed bounded rationality
zbMATH Keywords: Nash equilibrium
zbMATH Keywords: stability
zbMATH Keywords: bifurcation
zbMATH Keywords: chaos
MaRDI profile type: Publication
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description: scientific article; zbMATH DE number 1978009