A Cournot triopoly with two identical producers

Alina Szuz (), Anna Agliari () and Tonu Puu ()
Additional contact information
Alina Szuz: Independent researcher
Anna Agliari: Catholic University of Sacred Heart
Tonu Puu: Center for Regional Science, Umeå University, Umeå, Sweden

No 13, Gecomplexity Discussion Paper Series from Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation"

Abstract: In the present paper we analyze a Cournot oligopoly with three competitors, and we assume that two of them behave in the same way. Therefore the game reduces to a duopoly competition. We assume an iso-elastic demand function derived from a Cobb-Douglas utility function and linear costs. Furthermore the competitors adjust their moves giving a weight ß to the best calculated reply and another ሺ1 − ß áˆ» for their own previous move. The adjustment process shows that the Cournot equilibrium point loses stability through a Neimark-Sacker bifurcation of subcritical type and this implies that diferent attractors may coexist. We show that the different attractors appear and/or disappear due to the occurrence of homoclinic and border collision bifurcations.

Keywords: Cournot oligopoly; two-dimensional piecewise discrete map; subcritical Neimark-Sacker bifurcation; homoclinic bifurcation. (search for similar items in EconPapers)
Pages: 23 pages
Date: 2015-08, Revised 2015-08
New Economics Papers: this item is included in nep-com, nep-ind and nep-mic
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http://www.gecomplexity-cost.eu/repec/cst/wpaper/COST_paper_final.pdf First version, 2015 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:cst:wpaper:13

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