Computation of the Stability and Complexity about Triopoly Price Game Model with Delay Decision

We develop the price game model based on the entropy theory and chaos theory, considering the three enterprises are bounded rationality and using the cost function under the resource constraints; that is, the yield increase will bring increased costs. The enterprises of new model adopt the delay dec...

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Main Authors: Yuling Wang, Shubing Guo, Shide Duan
Format: Article
Language:English
Published: Wiley 2017-01-01
Series:Advances in Mathematical Physics
Online Access:http://dx.doi.org/10.1155/2017/2717352
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author Yuling Wang
Shubing Guo
Shide Duan
author_facet Yuling Wang
Shubing Guo
Shide Duan
author_sort Yuling Wang
collection DOAJ
description We develop the price game model based on the entropy theory and chaos theory, considering the three enterprises are bounded rationality and using the cost function under the resource constraints; that is, the yield increase will bring increased costs. The enterprises of new model adopt the delay decision with the delay parameters τ1 and τ2, respectively. According to the change of delay parameters τ1 and τ2, the bifurcation, stability, and chaos of the system are discussed, and the change of entropy when the system is far away from equilibrium is considered. Prices and profits are found to lose stability and the evolution of the system tends to the equilibrium state of maximum entropy. And it has a big fluctuation with the increase of τ1 and τ2. In the end, the chaos is controlled effectively. The entropy of the system decreases, and the interior reverts to order. The results of this study are of great significance for avoiding the chaos when the enterprises make price decisions.
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language English
publishDate 2017-01-01
publisher Wiley
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series Advances in Mathematical Physics
spelling doaj-art-e5c9899178fe4f9eb3207a229599e5672025-08-20T02:21:03ZengWileyAdvances in Mathematical Physics1687-91201687-91392017-01-01201710.1155/2017/27173522717352Computation of the Stability and Complexity about Triopoly Price Game Model with Delay DecisionYuling Wang0Shubing Guo1Shide Duan2School of Economics, South-Central University for Nationalities, Wuhan, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaSchool of Economics, South-Central University for Nationalities, Wuhan, ChinaWe develop the price game model based on the entropy theory and chaos theory, considering the three enterprises are bounded rationality and using the cost function under the resource constraints; that is, the yield increase will bring increased costs. The enterprises of new model adopt the delay decision with the delay parameters τ1 and τ2, respectively. According to the change of delay parameters τ1 and τ2, the bifurcation, stability, and chaos of the system are discussed, and the change of entropy when the system is far away from equilibrium is considered. Prices and profits are found to lose stability and the evolution of the system tends to the equilibrium state of maximum entropy. And it has a big fluctuation with the increase of τ1 and τ2. In the end, the chaos is controlled effectively. The entropy of the system decreases, and the interior reverts to order. The results of this study are of great significance for avoiding the chaos when the enterprises make price decisions.http://dx.doi.org/10.1155/2017/2717352
spellingShingle Yuling Wang
Shubing Guo
Shide Duan
Computation of the Stability and Complexity about Triopoly Price Game Model with Delay Decision
Advances in Mathematical Physics
title Computation of the Stability and Complexity about Triopoly Price Game Model with Delay Decision
title_full Computation of the Stability and Complexity about Triopoly Price Game Model with Delay Decision
title_fullStr Computation of the Stability and Complexity about Triopoly Price Game Model with Delay Decision
title_full_unstemmed Computation of the Stability and Complexity about Triopoly Price Game Model with Delay Decision
title_short Computation of the Stability and Complexity about Triopoly Price Game Model with Delay Decision
title_sort computation of the stability and complexity about triopoly price game model with delay decision
url http://dx.doi.org/10.1155/2017/2717352
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AT shubingguo computationofthestabilityandcomplexityabouttriopolypricegamemodelwithdelaydecision
AT shideduan computationofthestabilityandcomplexityabouttriopolypricegamemodelwithdelaydecision