Exploration of Complex Dynamics for Cournot Oligopoly Game with Differentiated Products
This paper proposes a Cournot game organized by three competing firms adopting bounded rationality. According to the marginal profit in the past time step, each firm tries to update its production using local knowledge. In this game, a firm’s preference is represented by a utility function that is d...
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| Format: | Article |
| Language: | English |
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Wiley
2018-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2018/6526794 |
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| _version_ | 1832564786221547520 |
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| author | S. S. Askar Mona F. EL-Wakeel M. A. Alrodaini |
| author_facet | S. S. Askar Mona F. EL-Wakeel M. A. Alrodaini |
| author_sort | S. S. Askar |
| collection | DOAJ |
| description | This paper proposes a Cournot game organized by three competing firms adopting bounded rationality. According to the marginal profit in the past time step, each firm tries to update its production using local knowledge. In this game, a firm’s preference is represented by a utility function that is derived from a constant elasticity of substitution (CES) production function. The game is modeled by a 3-dimensional discrete dynamical system. The equilibria of the system are numerically studied to detect their complex characteristics due to difficulty to get an explicit form for those equilibria. For the proposed utility function, some cases with different value parameters are considered. Numerical simulations are used to provide an experimental evidence for the complex behavior of the evolution of the system. The obtained results show that the system loses its stability due to different types of bifurcations. |
| format | Article |
| id | doaj-art-e91f26a9952d4c49a5c38d1a650bb299 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2018-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-e91f26a9952d4c49a5c38d1a650bb2992025-02-03T01:10:17ZengWileyComplexity1076-27871099-05262018-01-01201810.1155/2018/65267946526794Exploration of Complex Dynamics for Cournot Oligopoly Game with Differentiated ProductsS. S. Askar0Mona F. EL-Wakeel1M. A. Alrodaini2Department of Statistics and Operations Researches, College of Science, King Saud University, P.O. Box 2455, Riyadh 11451, Saudi ArabiaDepartment of Statistics and Operations Researches, College of Science, King Saud University, P.O. Box 2455, Riyadh 11451, Saudi ArabiaDepartment of Statistics and Operations Researches, College of Science, King Saud University, P.O. Box 2455, Riyadh 11451, Saudi ArabiaThis paper proposes a Cournot game organized by three competing firms adopting bounded rationality. According to the marginal profit in the past time step, each firm tries to update its production using local knowledge. In this game, a firm’s preference is represented by a utility function that is derived from a constant elasticity of substitution (CES) production function. The game is modeled by a 3-dimensional discrete dynamical system. The equilibria of the system are numerically studied to detect their complex characteristics due to difficulty to get an explicit form for those equilibria. For the proposed utility function, some cases with different value parameters are considered. Numerical simulations are used to provide an experimental evidence for the complex behavior of the evolution of the system. The obtained results show that the system loses its stability due to different types of bifurcations.http://dx.doi.org/10.1155/2018/6526794 |
| spellingShingle | S. S. Askar Mona F. EL-Wakeel M. A. Alrodaini Exploration of Complex Dynamics for Cournot Oligopoly Game with Differentiated Products Complexity |
| title | Exploration of Complex Dynamics for Cournot Oligopoly Game with Differentiated Products |
| title_full | Exploration of Complex Dynamics for Cournot Oligopoly Game with Differentiated Products |
| title_fullStr | Exploration of Complex Dynamics for Cournot Oligopoly Game with Differentiated Products |
| title_full_unstemmed | Exploration of Complex Dynamics for Cournot Oligopoly Game with Differentiated Products |
| title_short | Exploration of Complex Dynamics for Cournot Oligopoly Game with Differentiated Products |
| title_sort | exploration of complex dynamics for cournot oligopoly game with differentiated products |
| url | http://dx.doi.org/10.1155/2018/6526794 |
| work_keys_str_mv | AT ssaskar explorationofcomplexdynamicsforcournotoligopolygamewithdifferentiatedproducts AT monafelwakeel explorationofcomplexdynamicsforcournotoligopolygamewithdifferentiatedproducts AT maalrodaini explorationofcomplexdynamicsforcournotoligopolygamewithdifferentiatedproducts |