Stability and Multistability of a Bounded Rational Mixed Duopoly Model with Homogeneous Product

In this paper, a mixed duopoly dynamic model with bounded rationality is built, where a public-private joint venture and a private enterprise produce homogeneous products and compete in the same market. The purpose of this research is to study the stability and the multistability of the established...

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Main Authors: Wei Zhou, Na Zhao, Tong Chu, Ying-Xiang Chang
Format: Article
Language:English
Published: Wiley 2020-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2020/4580415
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author Wei Zhou
Na Zhao
Tong Chu
Ying-Xiang Chang
author_facet Wei Zhou
Na Zhao
Tong Chu
Ying-Xiang Chang
author_sort Wei Zhou
collection DOAJ
description In this paper, a mixed duopoly dynamic model with bounded rationality is built, where a public-private joint venture and a private enterprise produce homogeneous products and compete in the same market. The purpose of this research is to study the stability and the multistability of the established model. The local stability of all the equilibrium points is discussed by using Jury condition, and the stability region of the Nash equilibrium point has been given. A special fractal structure called “hub of periodicity” has been found in the two-parameter space by numerical simulation. In addition, the phenomena of multistability (also called coexistence of multiple attractors) are also studied using basins of attraction and 1-D bifurcation diagrams with adiabatic initial conditions. We find that there are two different coexistences of multiple attractors. And, the fractal structure of the attracting basin is also analyzed, and the formation mechanisms of “holes” and “contact” bifurcation have been revealed. At last, the long-term profits of the enterprises are studied. We find that some enterprises can even make more profits under a chaotic circumstance.
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spelling doaj-art-c4def9e0b57f410fa47eb50f40bf0a3c2025-08-20T02:18:47ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/45804154580415Stability and Multistability of a Bounded Rational Mixed Duopoly Model with Homogeneous ProductWei Zhou0Na Zhao1Tong Chu2Ying-Xiang Chang3School of Mathematics and Physics, Lanzhou Jiaotong University, Lanzhou, Gansu 730070, ChinaSchool of Mathematics and Physics, Lanzhou Jiaotong University, Lanzhou, Gansu 730070, ChinaSchool of Law, Zhejiang University of Finance and Economics, Hangzhou, Zhejiang 310018, ChinaSchool of Mathematics and Physics, Lanzhou Jiaotong University, Lanzhou, Gansu 730070, ChinaIn this paper, a mixed duopoly dynamic model with bounded rationality is built, where a public-private joint venture and a private enterprise produce homogeneous products and compete in the same market. The purpose of this research is to study the stability and the multistability of the established model. The local stability of all the equilibrium points is discussed by using Jury condition, and the stability region of the Nash equilibrium point has been given. A special fractal structure called “hub of periodicity” has been found in the two-parameter space by numerical simulation. In addition, the phenomena of multistability (also called coexistence of multiple attractors) are also studied using basins of attraction and 1-D bifurcation diagrams with adiabatic initial conditions. We find that there are two different coexistences of multiple attractors. And, the fractal structure of the attracting basin is also analyzed, and the formation mechanisms of “holes” and “contact” bifurcation have been revealed. At last, the long-term profits of the enterprises are studied. We find that some enterprises can even make more profits under a chaotic circumstance.http://dx.doi.org/10.1155/2020/4580415
spellingShingle Wei Zhou
Na Zhao
Tong Chu
Ying-Xiang Chang
Stability and Multistability of a Bounded Rational Mixed Duopoly Model with Homogeneous Product
Complexity
title Stability and Multistability of a Bounded Rational Mixed Duopoly Model with Homogeneous Product
title_full Stability and Multistability of a Bounded Rational Mixed Duopoly Model with Homogeneous Product
title_fullStr Stability and Multistability of a Bounded Rational Mixed Duopoly Model with Homogeneous Product
title_full_unstemmed Stability and Multistability of a Bounded Rational Mixed Duopoly Model with Homogeneous Product
title_short Stability and Multistability of a Bounded Rational Mixed Duopoly Model with Homogeneous Product
title_sort stability and multistability of a bounded rational mixed duopoly model with homogeneous product
url http://dx.doi.org/10.1155/2020/4580415
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AT nazhao stabilityandmultistabilityofaboundedrationalmixedduopolymodelwithhomogeneousproduct
AT tongchu stabilityandmultistabilityofaboundedrationalmixedduopolymodelwithhomogeneousproduct
AT yingxiangchang stabilityandmultistabilityofaboundedrationalmixedduopolymodelwithhomogeneousproduct