Nonlinear dynamics in a Cournot duopoly with different attitudes towards strategic uncertainty
type: Item
instance of: scholarly article
title: Nonlinear dynamics in a Cournot duopoly with different attitudes towards strategic uncertainty
zbMATH Open document ID: 1291.91153
DOI: 10.1155/2013/323290
author: Luciano Fanti
author: Luca Gori
author: M. Sodini
published in: Abstract and Applied Analysis
publication date: 2014-06-23T00:00:00Z
review text: Summary: This paper analyses the dynamics of a duopoly with quantity-setting firms and different attitudes towards strategic uncertainty. By following the recent literature on decision making under uncertainty, where the Choquet expected utility theory is adopted to allow firms to plan their strategies, we investigate the effects of the interaction between pessimistic and optimistic firms on economic dynamics described by a two-dimensional map. In particular, the study of the local and global behaviour of the map is performed under three assumptions: (1) both firms have complete information on the market demand and adjust production over time depending on past behaviours (static expectations-``best reply'' dynamics); (2) both firms have incomplete information and production is adjusted over time by following a mechanism based on marginal profits; and (3) one firm has incomplete information on the market demand and production decisions are based on the behaviour of marginal profits, and the rival has complete information on the market demand and static expectations. In cases 2 and 3 it is shown that complex dynamics and coexistence of attractors may arise. The analysis is carried forward through numerical simulations and the critical lines technique.
Mathematics Subject Classification ID: 91B54
Mathematics Subject Classification ID: 91B55
zbMATH DE Number: 6306654
Wikidata QID: Q58915938
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2013/323290
OpenAlex ID: W2106160798
cites work: Q3395305
cites work: Nash equilibrium under Knightian uncertainty: Breaking down backward induction
cites work: Non-additive beliefs and strategic equilibria
cites work: Ambiguous games
cites work: Choice under uncertainty with the best and worst in mind: Neo-additive capacities
cites work: Subjective Probability and Expected Utility without Additivity
cites work: COURNOT OLIGOPOLY UNDER STRATEGIC UNCERTAINTY WITH OPTIMISTIC AND PESSIMISTIC FIRMS
cites work: Chaotic dynamics in nonlinear duopoly game with heterogeneous players.
cites work: Synchronization, intermittency and critical curves in a duopoly game
cites work: Symmetry-breaking bifurcations and representative firm in dynamic duopoly games
cites work: Nonlinear dynamics in a Cournot duopoly with relative profit delegation
cites work: The dynamics of a Bertrand duopoly with differentiated products: Synchronization, intermittency and global dynamics
cites work: Chaos in duopoly pricing
cites work: Comparative Statics for Oligopoly
cites work: Q4504056
cites work: The Cournot-Theocharis problem reconsidered
cites work: Q4871304
cites work: Q3993502
description: scientific article; zbMATH DE number 6306654