The Chaos Dynamic of Multiproduct Cournot Duopoly Game with Managerial Delegation
Although oligopoly theory is generally concerned with the single-product firm, what is true in the real word is that most of the firms offer multiproducts rather than single products in order to obtain cost-saving advantages, cater for the diversity of consumer tastes, and provide a barrier to entry...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2014-01-01
|
| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2014/206961 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850110270454628352 |
|---|---|
| author | Fang Wu Junhai Ma |
| author_facet | Fang Wu Junhai Ma |
| author_sort | Fang Wu |
| collection | DOAJ |
| description | Although oligopoly theory is generally concerned with the single-product firm, what is true in the real word is that most of the firms offer multiproducts rather than single products in order to obtain cost-saving advantages, cater for the diversity of consumer tastes, and provide a barrier to entry. We develop a dynamical multiproduct Cournot duopoly model in discrete time, where each firm has an owner who delegates the output decision to a manager. The principle of decision-making is bounded rational. And each firm has a nonlinear total cost function due to the multiproduct framework. The Cournot Nash equilibrium and the local stability are investigated. The tangential bifurcation and intermittent chaos are reported by numerical simulations. The results show that high output adjustment speed can lead to output fluctuations which are characterized by phases of low volatility with small output changes and phases of high volatility with large output changes. The intermittent route to chaos of Flip bifurcation and another intermittent route of Flip bifurcation which contains Hopf bifurcation can exist in the system. The study can improve our understanding of intermittent chaos frequently observed in oligopoly economy. |
| format | Article |
| id | doaj-art-458dc065ce8e4bc486ffaef29e0fce8f |
| institution | OA Journals |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-458dc065ce8e4bc486ffaef29e0fce8f2025-08-20T02:37:52ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/206961206961The Chaos Dynamic of Multiproduct Cournot Duopoly Game with Managerial DelegationFang Wu0Junhai Ma1College of Management and Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaAlthough oligopoly theory is generally concerned with the single-product firm, what is true in the real word is that most of the firms offer multiproducts rather than single products in order to obtain cost-saving advantages, cater for the diversity of consumer tastes, and provide a barrier to entry. We develop a dynamical multiproduct Cournot duopoly model in discrete time, where each firm has an owner who delegates the output decision to a manager. The principle of decision-making is bounded rational. And each firm has a nonlinear total cost function due to the multiproduct framework. The Cournot Nash equilibrium and the local stability are investigated. The tangential bifurcation and intermittent chaos are reported by numerical simulations. The results show that high output adjustment speed can lead to output fluctuations which are characterized by phases of low volatility with small output changes and phases of high volatility with large output changes. The intermittent route to chaos of Flip bifurcation and another intermittent route of Flip bifurcation which contains Hopf bifurcation can exist in the system. The study can improve our understanding of intermittent chaos frequently observed in oligopoly economy.http://dx.doi.org/10.1155/2014/206961 |
| spellingShingle | Fang Wu Junhai Ma The Chaos Dynamic of Multiproduct Cournot Duopoly Game with Managerial Delegation Discrete Dynamics in Nature and Society |
| title | The Chaos Dynamic of Multiproduct Cournot Duopoly Game with Managerial Delegation |
| title_full | The Chaos Dynamic of Multiproduct Cournot Duopoly Game with Managerial Delegation |
| title_fullStr | The Chaos Dynamic of Multiproduct Cournot Duopoly Game with Managerial Delegation |
| title_full_unstemmed | The Chaos Dynamic of Multiproduct Cournot Duopoly Game with Managerial Delegation |
| title_short | The Chaos Dynamic of Multiproduct Cournot Duopoly Game with Managerial Delegation |
| title_sort | chaos dynamic of multiproduct cournot duopoly game with managerial delegation |
| url | http://dx.doi.org/10.1155/2014/206961 |
| work_keys_str_mv | AT fangwu thechaosdynamicofmultiproductcournotduopolygamewithmanagerialdelegation AT junhaima thechaosdynamicofmultiproductcournotduopolygamewithmanagerialdelegation AT fangwu chaosdynamicofmultiproductcournotduopolygamewithmanagerialdelegation AT junhaima chaosdynamicofmultiproductcournotduopolygamewithmanagerialdelegation |