ON A COURNOT DUOPOLY GAME WITH DIFFERENTIATED GOODS, HETEROGENEOUS EXPECTATIONS AND A COST FUNCTION INCLUDING EMISSION COSTS
In this study we investigate the dynamics of a nonlinear Cournot- type duopoly game with differentiated goods, linear demand and a cost function that includes emission costs. The game is modeled with a system of two difference equations. Existence and stability of equilibria of this system are studi...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Pitesti
2017-07-01
|
| Series: | Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice |
| Subjects: | |
| Online Access: | http://economic.upit.ro/repec/pdf/2017_1_2.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849416233052536832 |
|---|---|
| author | Georges SARAFOPOULOS Kosmas PAPADOPOULOS |
| author_facet | Georges SARAFOPOULOS Kosmas PAPADOPOULOS |
| author_sort | Georges SARAFOPOULOS |
| collection | DOAJ |
| description | In this study we investigate the dynamics of a nonlinear Cournot- type duopoly game with differentiated goods, linear demand and a cost function that includes emission costs. 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 and a higher (lower) degree of product differentiation (weaker or fiercer competition) destabilize (stabilize) the economy. The chaotic features are justified numerically via computing Lyapunov numbers and sensitive dependence on initial conditions. Also, we show that in this case there are stable trajectories and a higher (lower) degree of product differentiation does not tend to destabilize the economy. |
| format | Article |
| id | doaj-art-133e612e27f4496f8b478e0d26ba90b3 |
| institution | Kabale University |
| issn | 1583-1809 2344-4908 |
| language | English |
| publishDate | 2017-07-01 |
| publisher | University of Pitesti |
| record_format | Article |
| series | Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice |
| spelling | doaj-art-133e612e27f4496f8b478e0d26ba90b32025-08-20T03:33:15ZengUniversity of PitestiBuletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice1583-18092344-49082017-07-011611122ON A COURNOT DUOPOLY GAME WITH DIFFERENTIATED GOODS, HETEROGENEOUS EXPECTATIONS AND A COST FUNCTION INCLUDING EMISSION COSTSGeorges SARAFOPOULOS0Kosmas PAPADOPOULOS1Department of Economics, Democritus University of Thrace, GreeceDepartment of Economics, Democritus University of Thrace, GreeceIn this study we investigate the dynamics of a nonlinear Cournot- type duopoly game with differentiated goods, linear demand and a cost function that includes emission costs. 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 and a higher (lower) degree of product differentiation (weaker or fiercer competition) destabilize (stabilize) the economy. The chaotic features are justified numerically via computing Lyapunov numbers and sensitive dependence on initial conditions. Also, we show that in this case there are stable trajectories and a higher (lower) degree of product differentiation does not tend to destabilize the economy.http://economic.upit.ro/repec/pdf/2017_1_2.pdfCournot duopoly gameDiscrete dynamical systemHeterogeneous expectationsStabilityChaotic behavior |
| spellingShingle | Georges SARAFOPOULOS Kosmas PAPADOPOULOS ON A COURNOT DUOPOLY GAME WITH DIFFERENTIATED GOODS, HETEROGENEOUS EXPECTATIONS AND A COST FUNCTION INCLUDING EMISSION COSTS Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice Cournot duopoly game Discrete dynamical system Heterogeneous expectations Stability Chaotic behavior |
| title | ON A COURNOT DUOPOLY GAME WITH DIFFERENTIATED GOODS, HETEROGENEOUS EXPECTATIONS AND A COST FUNCTION INCLUDING EMISSION COSTS |
| title_full | ON A COURNOT DUOPOLY GAME WITH DIFFERENTIATED GOODS, HETEROGENEOUS EXPECTATIONS AND A COST FUNCTION INCLUDING EMISSION COSTS |
| title_fullStr | ON A COURNOT DUOPOLY GAME WITH DIFFERENTIATED GOODS, HETEROGENEOUS EXPECTATIONS AND A COST FUNCTION INCLUDING EMISSION COSTS |
| title_full_unstemmed | ON A COURNOT DUOPOLY GAME WITH DIFFERENTIATED GOODS, HETEROGENEOUS EXPECTATIONS AND A COST FUNCTION INCLUDING EMISSION COSTS |
| title_short | ON A COURNOT DUOPOLY GAME WITH DIFFERENTIATED GOODS, HETEROGENEOUS EXPECTATIONS AND A COST FUNCTION INCLUDING EMISSION COSTS |
| title_sort | on a cournot duopoly game with differentiated goods heterogeneous expectations and a cost function including emission costs |
| topic | Cournot duopoly game Discrete dynamical system Heterogeneous expectations Stability Chaotic behavior |
| url | http://economic.upit.ro/repec/pdf/2017_1_2.pdf |
| work_keys_str_mv | AT georgessarafopoulos onacournotduopolygamewithdifferentiatedgoodsheterogeneousexpectationsandacostfunctionincludingemissioncosts AT kosmaspapadopoulos onacournotduopolygamewithdifferentiatedgoodsheterogeneousexpectationsandacostfunctionincludingemissioncosts |