Open AccessDynamical analysis of a Cournot duopoly model
Author(s) -
M. F. Elettreby
Publication year - 2016
Publication title -
journal of the egyptian mathematical society
Language(s) - English
Resource type - Journals
eISSN - 2090-9128
pISSN - 1110-256X
DOI - 10.1016/j.joems.2016.03.005
Subject(s) - cournot competition , duopoly , constant (computer programming) , homogeneous , stability (learning theory) , economics , mathematical economics , mathematics , bertrand competition , function (biology) , marginal cost , microeconomics , computer science , oligopoly , combinatorics , machine learning , evolutionary biology , biology , programming language
In this paper, two different mechanisms are used to study a homogeneous Cournot duopoly in a market characterized by the downward sloping and concave price function. Two firms, which have constant marginal costs, use adaptive, low-rationality mechanisms to adjust their production levels toward equilibrium. In particular, the stability of the equilibrium for two different mechanisms is studied. However, complex dynamics arise, especially when the reaction coefficient increases. Finally, we compare the obtained results of the two models