Complexity Analysis of a Cournot-Bertrand Duopoly Game Model with Limited Information

A Cournot-Bertrand mixed duopoly game model with limited information about the market and opponent is considered, where the market has linear demand and two firms have the same fixed marginal cost. The principles of decision-making are bounded rational. One firm chooses output and the other chooses...

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Main Authors: Hongwu Wang, Junhai Ma
Format: Article
Language:English
Published: Wiley 2013-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2013/287371
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author Hongwu Wang
Junhai Ma
author_facet Hongwu Wang
Junhai Ma
author_sort Hongwu Wang
collection DOAJ
description A Cournot-Bertrand mixed duopoly game model with limited information about the market and opponent is considered, where the market has linear demand and two firms have the same fixed marginal cost. The principles of decision-making are bounded rational. One firm chooses output and the other chooses price as decision variable, with the assumption that there is a certain degree of differentiation between the products offered by firms to avoid the whole market being occupied by the one that applies a lower price. The existence of Nash equilibrium point and its local stability of the game are investigated. The complex dynamics, such as bifurcation scenarios and route to chaos, are displayed using parameter basin plots by numerical experiment. The influences of the parameters on the system performance are discussed from the perspective of economics.
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institution Kabale University
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series Discrete Dynamics in Nature and Society
spelling doaj-art-e768f257e52a43eeabfc7be4267617b92025-08-20T03:24:43ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2013-01-01201310.1155/2013/287371287371Complexity Analysis of a Cournot-Bertrand Duopoly Game Model with Limited InformationHongwu Wang0Junhai Ma1School of Management, Tianjin University, Tianjin 300072, ChinaSchool of Management, Tianjin University, Tianjin 300072, ChinaA Cournot-Bertrand mixed duopoly game model with limited information about the market and opponent is considered, where the market has linear demand and two firms have the same fixed marginal cost. The principles of decision-making are bounded rational. One firm chooses output and the other chooses price as decision variable, with the assumption that there is a certain degree of differentiation between the products offered by firms to avoid the whole market being occupied by the one that applies a lower price. The existence of Nash equilibrium point and its local stability of the game are investigated. The complex dynamics, such as bifurcation scenarios and route to chaos, are displayed using parameter basin plots by numerical experiment. The influences of the parameters on the system performance are discussed from the perspective of economics.http://dx.doi.org/10.1155/2013/287371
spellingShingle Hongwu Wang
Junhai Ma
Complexity Analysis of a Cournot-Bertrand Duopoly Game Model with Limited Information
Discrete Dynamics in Nature and Society
title Complexity Analysis of a Cournot-Bertrand Duopoly Game Model with Limited Information
title_full Complexity Analysis of a Cournot-Bertrand Duopoly Game Model with Limited Information
title_fullStr Complexity Analysis of a Cournot-Bertrand Duopoly Game Model with Limited Information
title_full_unstemmed Complexity Analysis of a Cournot-Bertrand Duopoly Game Model with Limited Information
title_short Complexity Analysis of a Cournot-Bertrand Duopoly Game Model with Limited Information
title_sort complexity analysis of a cournot bertrand duopoly game model with limited information
url http://dx.doi.org/10.1155/2013/287371
work_keys_str_mv AT hongwuwang complexityanalysisofacournotbertrandduopolygamemodelwithlimitedinformation
AT junhaima complexityanalysisofacournotbertrandduopolygamemodelwithlimitedinformation