TY - GEN
T1 - Complex dynamics analysis for a Bertrand duopoly model with bounded rationality
AU - Zhang, Ji Xiang
AU - Zhou, De Qun
AU - Wang, Yan Hua
PY - 2009
Y1 - 2009
N2 - A dynamic of Bertrand duopoly game is analyzed, where players use different production methods and choose their prices with bounded rationality. The equilibriums of the corresponding discrete dynamical systems are investigated. The stability conditions of Nash equilibrium under a local adjustment process are studied. The stability conditions of Nash equilibrium under a local adjustment process are studied. The stability of Nash equilibrium, as some parameters of the model are varied, gives rise to complex dynamics such as cycles of higher order and chaos. On this basis, we discover that an increase of adjustment speed of bounded rational player can make Bertrand market sink into the chaotic state. Finally, the complex dynamics, bifurcations and chaos are displayed by numerical simulation.
AB - A dynamic of Bertrand duopoly game is analyzed, where players use different production methods and choose their prices with bounded rationality. The equilibriums of the corresponding discrete dynamical systems are investigated. The stability conditions of Nash equilibrium under a local adjustment process are studied. The stability conditions of Nash equilibrium under a local adjustment process are studied. The stability of Nash equilibrium, as some parameters of the model are varied, gives rise to complex dynamics such as cycles of higher order and chaos. On this basis, we discover that an increase of adjustment speed of bounded rational player can make Bertrand market sink into the chaotic state. Finally, the complex dynamics, bifurcations and chaos are displayed by numerical simulation.
KW - Bertrand duopoly model
KW - Discrete dynamical system
KW - Heterogeneous expectations
KW - Nash equilibrium
KW - Stability
UR - http://www.scopus.com/inward/record.url?scp=72249104467&partnerID=8YFLogxK
U2 - 10.1109/ICMSE.2009.5317513
DO - 10.1109/ICMSE.2009.5317513
M3 - Conference contribution
AN - SCOPUS:72249104467
SN - 9781424439706
T3 - 2009 International Conference on Management Science and Engineering - 16th Annual Conference Proceedings, ICMSE 2009
SP - 190
EP - 195
BT - 2009 International Conference on Management Science and Engineering - 16th Annual Conference Proceedings, ICMSE 2009
T2 - 2009 16th International Conference on Management Science and Engineering, ICMSE 2009
Y2 - 14 September 2009 through 16 September 2009
ER -