Nonlinear Dynamics of Cournot Duopoly Game: When One Firm Considers Social Welfare

In this paper, we study the competition between two firms whose outputs are quantities. The first firm considers maximization of its profit while the second firm considers maximization of its social welfare. Adopting a gradient-based mechanism, we introduce a nonlinear discrete dynamic map which is...

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Main Authors: S. S. Askar, A. A. Elsadany
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2021/6697341
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author S. S. Askar
A. A. Elsadany
author_facet S. S. Askar
A. A. Elsadany
author_sort S. S. Askar
collection DOAJ
description In this paper, we study the competition between two firms whose outputs are quantities. The first firm considers maximization of its profit while the second firm considers maximization of its social welfare. Adopting a gradient-based mechanism, we introduce a nonlinear discrete dynamic map which is used to describe the dynamics of this game. For this map, the fixed points are calculated and their stability conditions are analyzed. This includes investigating some attracting set and chaotic behaviors for the complex dynamics of the map. We have also investigated the types of the preimages that characterize the phase plane of the map and conclude that the game’s map is noninvertible of type Z4−Z2.
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spelling doaj-art-eace066a8a894b78b17b3ce3acb7a5472025-08-20T02:21:39ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/66973416697341Nonlinear Dynamics of Cournot Duopoly Game: When One Firm Considers Social WelfareS. S. Askar0A. A. Elsadany1Department of Statistics and Operations Research, College of Science, King Saud University, Riyadh, Saudi ArabiaDepartment of Basic Science, Faculty of Computers and Informatics, Suez Canal University, Ismailia 41522, EgyptIn this paper, we study the competition between two firms whose outputs are quantities. The first firm considers maximization of its profit while the second firm considers maximization of its social welfare. Adopting a gradient-based mechanism, we introduce a nonlinear discrete dynamic map which is used to describe the dynamics of this game. For this map, the fixed points are calculated and their stability conditions are analyzed. This includes investigating some attracting set and chaotic behaviors for the complex dynamics of the map. We have also investigated the types of the preimages that characterize the phase plane of the map and conclude that the game’s map is noninvertible of type Z4−Z2.http://dx.doi.org/10.1155/2021/6697341
spellingShingle S. S. Askar
A. A. Elsadany
Nonlinear Dynamics of Cournot Duopoly Game: When One Firm Considers Social Welfare
Discrete Dynamics in Nature and Society
title Nonlinear Dynamics of Cournot Duopoly Game: When One Firm Considers Social Welfare
title_full Nonlinear Dynamics of Cournot Duopoly Game: When One Firm Considers Social Welfare
title_fullStr Nonlinear Dynamics of Cournot Duopoly Game: When One Firm Considers Social Welfare
title_full_unstemmed Nonlinear Dynamics of Cournot Duopoly Game: When One Firm Considers Social Welfare
title_short Nonlinear Dynamics of Cournot Duopoly Game: When One Firm Considers Social Welfare
title_sort nonlinear dynamics of cournot duopoly game when one firm considers social welfare
url http://dx.doi.org/10.1155/2021/6697341
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