The effect of price discrimination on dynamic duopoly games with bounded rationality

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Qi-Qing Song ◽  
Wei-li Zhang ◽  
Yi-Rong Jiang ◽  
Juan Geng
Keyword(s):  
Bounded Rationality ◽  
Price Discrimination ◽  
Equilibrium Points ◽  
Dynamic Game ◽  
Stationary Points ◽  
Cournot Duopoly ◽  
Nash Equilibrium Point ◽  
Demand Elasticities ◽  
The Stability ◽  
Dynamic Duopoly

AbstractIn a homogenous product market, customers’ different demand elasticities may lead to different prices. This study examined price discrimination’s effect on equilibrium points in Cournot duopoly games by assuming that each firm charges K prices and adjusts its strategies based on bounded rationality. In consideration of price discrimination, two discrete dynamic game systems with 2K variables were introduced for players with homogenous or heterogenous expectations. The stability of the Nash equilibrium point was found to be independent of price discrimination. Given price discrimination, the stability of boundary stationary points for the system with homogenous players is different from that for the system with heterogenous players. Numerical simulations verified the critical point for the system with homogenous players from being stable to its bifurcation.

scholarly journals Complexity Analysis of a 3-Player Game with Bounded Rationality Participating in Nitrogen Emission Reduction

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-16 ◽  
Author(s):  
Jixiang Zhang ◽  
Xuan Xi
Keyword(s):  
Nash Equilibrium ◽  
Equilibrium Point ◽  
Bounded Rationality ◽  
Control Method ◽  
Initial Conditions ◽  
Equilibrium Points ◽  
Stable Region ◽  
Nitrogen Emissions ◽  
Nash Equilibrium Point ◽  
The Stability

In this paper, a decision-making competition game model concerning governments, agricultural enterprises, and the public, all of which participate in the reduction of nitrogen emissions in the watersheds, is established based on bounded rationality. First, the stability conditions of the equilibrium points in the system are discussed, and the stable region of the Nash equilibrium is determined. Then, the bifurcation diagram, maximal Lyapunov exponent, strange attractor, and sensitive dependence on the initial conditions are shown through numerical simulations. The research shows that the adjustment speed of three players’ decisions may alter the stability of the Nash equilibrium point and lead to chaos in the system. Among these decisions, a government’s decision has the largest effect on the system. In addition, we find that some parameters will affect the stability of the system; when the parameters become beneficial for enterprises to reduce nitrogen emissions, the increase in the parameters can help control the chaotic market. Finally, the delay feedback control method is used to successfully control the chaos in the system and stabilize it at the Nash equilibrium point. The research of this paper is of great significance to the environmental governance decisions and nitrogen reduction management.

A Dynamic Duopoly Game with Content Providers’ Bounded Rationality

2020 ◽  
Vol 30 (07) ◽  
pp. 2050095 ◽  
Author(s):  
Hamid Garmani ◽  
Driss Ait Omar ◽  
Mohamed El Amrani ◽  
Mohamed Baslam ◽  
Mostafa Jourhmane
Keyword(s):  
Bounded Rationality ◽  
Chaotic Behavior ◽  
Sufficient Condition ◽  
Necessary And Sufficient Condition ◽  
Pricing Decisions ◽  
Dynamical Behaviors ◽  
Duopoly Model ◽  
The Stability ◽  
Necessary And Sufficient ◽  
Dynamic Duopoly

This paper investigates the dynamical behaviors of a duopoly model with two content providers (CPs). Competition between two CPs is assumed to take place in terms of their pricing decisions and the credibility of content they offer. According to the CPs’ rationality level, we consider a scenario where both CPs are bounded rational. Each CP in any period uses the marginal profit observed from the previous period to choose its strategies. We compute explicitly the steady states of the dynamical system induced by bounded rationality, and establish a necessary and sufficient condition for stability of its Nash equilibrium (NE). Numerical simulations show that if some parameters of the model are varied, the stability of the NE point is lost and the complex (periodic or chaotic) behavior occurs. The chaotic behavior of the system is stabilized on the NE point by applying control.

scholarly journals Dynamic Cournot Duopoly Game with Delay

2014 ◽  
Vol 2014 ◽  
pp. 1-7 ◽  
Author(s):  
A. A. Elsadany ◽  
A. E. Matouk
Keyword(s):  
Nash Equilibrium ◽  
Equilibrium Point ◽  
Local Stability ◽  
Stability Region ◽  
Equilibrium Points ◽  
Cournot Duopoly ◽  
Nash Equilibrium Point ◽  
Dynamical Behaviors ◽  
Delayed System

The delay Cournot duopoly game is studied. Dynamical behaviors of the game are studied. Equilibrium points and their stability are studied. The results show that the delayed system has the same Nash equilibrium point and the delay can increase the local stability region.

scholarly journals Chaotic Characteristics and Application of Cooperative Game and Evolutionary Game

2014 ◽  
Vol 2014 ◽  
pp. 1-13 ◽  
Author(s):  
Yujing Yang ◽  
Junhai Ma ◽  
Hongliang Tu
Keyword(s):  
Chaos Control ◽  
Evolutionary Game ◽  
Time History ◽  
Renewable Resource ◽  
Stable Region ◽  
Cournot Duopoly ◽  
Nash Equilibrium Point ◽  
Cournot Game ◽  
Adjustment Speed ◽  
The Stability

According to a dynamical multiteam Cournot game in exploitation of a renewable resource, a new dynamic Cournot duopoly game model with team players in exploitation of a renewable resource is built up in this paper. Based on the theory of bifurcations of dynamical systems, the stability of the system is studied and the local stable region of Nash equilibrium point is obtained. The effect of the output adjustment speed parameters and the weight parameter of the system on the dynamic characteristics of the system are researched. The complexity of the system is described via the bifurcation diagrams, the Lyapunov exponents, the phase portrait, the time history diagram, and the fractal dimension. Furthermore, the chaos control of the system is realized by the parameter adjustment method. At last, an evolutionary game as a special dynamic system is constructed and analyzed which is more useful and helpful in application. The derived results have very important theoretical and practical values for the renewable resource market and companies.

The chaotic dynamics of a quantum Cournot duopoly game with bounded rationality

2020 ◽  
Vol 18 (06) ◽  
pp. 2050029
Author(s):  
Xinli Zhang ◽  
Deshan Sun ◽  
Wei Jiang
Keyword(s):  
Quantum Entanglement ◽  
Stability Region ◽  
Chaotic Dynamics ◽  
Initial Conditions ◽  
Equilibrium Points ◽  
Largest Lyapunov Exponent ◽  
Cournot Duopoly ◽  
The Stability ◽  
The Impact ◽  
Rational Players

This paper analyzes the chaotic dynamics of a quantum Cournot duopoly game with bounded rational players by applying quantum game theory. We investigate the impact of quantum entanglement on the stability of the quantum Nash equilibrium points and chaotic dynamics behaviors of the system. The result shows that the stability region decreases with the quantum entanglement increasing. The adjustment speeds of bounded rational players can lead to chaotic behaviors, and quantum entanglement accelerates the bifurcation and chaos of the system. Numerical simulations demonstrate the chaotic features via stability region, bifurcation, largest Lyapunov exponent, strange attractors, sensitivity to initial conditions and fractal dimensions.

scholarly journals Research on the Influence of Bounded Rationality and Product Differentiation on the Stability of Steel Industry Market

2020 ◽  
Vol 2020 ◽  
pp. 1-20
Author(s):  
Ye Duan ◽  
Zenglin Han ◽  
Hailin Mu ◽  
Jun Yang ◽  
Yonghua Li
Keyword(s):  
Bounded Rationality ◽  
Product Differentiation ◽  
Steel Industry ◽  
Dynamic Game ◽  
Differentiation Strategy ◽  
Adjustment Strategy ◽  
New Findings ◽  
Adjustment Policies ◽  
The Stability ◽  
Steel Market

At present, the problems of homogenization and low quality in China’s iron and steel industry are particularly prominent and the ability of the enterprises to cope with change is insufficient. Adopting product differentiation strategy and dynamic adjustment strategy can allow steel enterprises and the industry to better adapt to future changes. By introducing the product differentiation degree (substitution coefficient) and the bounded rationality strategy to simulate these two strategic means, this paper constructs an extended two-stage dynamic game model to analyse the dynamic game scenarios and steel market stability in China. As new findings, we report the following: (1) The system is more likely to fall into an unbalanced state when multiple enterprises adopt the policy of dynamic output adjustment simultaneously. (2) Enterprises with large output and small output have different output adjustment policies. When enterprises with big-scale output adopt a bit larger adjustment policies, enterprises with small output will be strongly impacted, and the available adjustment space will be sharply compressed. (3) The gradual increase in the difference between products reduces the stability of the market. (4) When product differentiation and bounded rationality strategies coexist, the steel market may fall into an unbalanced state when the degree of product difference increases excessively and the enterprise adopts more drastic output adjustment policies. Therefore, there are pros and cons to product differentiation strategy and bounded rationality adjustment strategy. When each steel oligopoly enterprise formulates a production plan, it needs to comprehensively consider the output changes of the other enterprises and carefully weigh the strategic issues.

Global Dynamics and Synchronization in a Duopoly Game with Bounded Rationality and Consumer Surplus

2019 ◽  
Vol 29 (11) ◽  
pp. 1930031 ◽  
Author(s):  
Yinxia Cao ◽  
Wei Zhou ◽  
Tong Chu ◽  
Yingxiang Chang
Keyword(s):  
Bounded Rationality ◽  
Equilibrium Points ◽  
Logistic Map ◽  
Consumer Surplus ◽  
Global Dynamics ◽  
Bifurcation Diagrams ◽  
Fractal Structures ◽  
One Dimensional ◽  
Adjustment Speed ◽  
The Stability

Based on the oligopoly game theory, a dynamic duopoly Cournot model with bounded rationality and consumer surplus is established. On the one hand, the type and the stability of the boundary equilibrium points and the stability conditions of the Nash equilibrium point are discussed in detail. On the other hand, the potential complex dynamics of the system is demonstrated by a set of 2D bifurcation diagrams. It is found that the bifurcation diagrams have beautiful fractal structures when the adjustment speed of production is taken as the bifurcation parameter. And it is verified that the area with scattered points in the 2D bifurcation diagrams is caused by the coexistence of multiple attractors. It is also found that there may be two, three or four coexisting attractors. It is even found the coexistence of Milnor attractor and other attractors. Moreover, the topological structure of the attracting basin and global dynamics of the system are investigated by the noninvertible map theory, using the critical curve and the transverse Lyapunov exponent. It is concluded that two different types of global bifurcations may occur. Because of the symmetry of the system, it can be concluded that the diagonal of the system is an invariant one-dimensional submanifold. And it is controlled by a one-dimensional map which is equivalent to the classical Logistic map. The bifurcation curve of the system on the adjustment speed and the weight of the consumer surplus is obtained based on the properties of the Logistic map. And the synchronization phenomenon along the invariant diagonal is discussed at the end of the paper.

scholarly journals Dynamics of a Cournot Duopoly Game with a Generalized Bounded Rationality

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-10 ◽  
Author(s):  
A. Al-khedhairi
Keyword(s):  
Stability Analysis ◽  
Bounded Rationality ◽  
Numerical Computation ◽  
Local Stability ◽  
Complex Dynamics ◽  
Equilibrium Points ◽  
Cournot Duopoly ◽  
Local Stability Analysis

In this paper, the dynamics of Cournot duopoly game with a generalized bounded rationality is considered. The fractional bounded rationality of the Cournot duopoly game is introduced. The conditions of local stability analysis of equilibrium points of the game are derived. The effect of fractional marginal profit on the game is investigated. The complex dynamics behaviors of the game are discussed by numerical computation when parameters are varied.

scholarly journals A Dynamic Duopoly Cournot Model with R&D Efforts and Its Dynamic Behavior Analysis

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-19
Author(s):  
Wei Zhou ◽  
Jie Zhou ◽  
Tong Chu ◽  
Hui Li
Keyword(s):  
Dynamic Behavior ◽  
Equilibrium Points ◽  
Flip Bifurcation ◽  
Nash Equilibrium Point ◽  
Dynamical Behaviors ◽  
Coexistence Of Attractors ◽  
Route To Chaos ◽  
The Stability ◽  
The Given ◽  
Jury Criterion

In this paper, a dynamic two-stage Cournot duopoly game with R&D efforts is built. Then, the local stability of the equilibrium points are discussed, and the stability condition of the Nash equilibrium point is also deduced through Jury criterion. The complex dynamical behaviors of the built model are investigated by numerical simulations. We found that the unique route to chaos is flip bifurcation, and the increase of adjusting speed will cause the system to lose stability and produce more complex dynamic behavior. In addition, we also found the phenomenon of multistability in the given model. Several kinds of coexistence of attractors are shown. In particular, we found that boundary attractors can coexist with internal attractors, which also aggravates the complexity of the system. At last, the chaotic state in the built system has been successfully controlled.

scholarly journals Order and Chaos in a Prey-Predator Model Incorporating Refuge, Disease, and Harvesting

2020 ◽  
Vol 2020 ◽  
pp. 1-19
Author(s):  
Dahlia Khaled Bahlool ◽  
Huda Abdul Satar ◽  
Hiba Abdullah Ibrahim
Keyword(s):  
Equilibrium Points ◽  
Global Dynamics ◽  
Persistence Conditions ◽  
Local Bifurcation Analysis ◽  
Uniqueness Of The Solution ◽  
Harvesting Process ◽  
Predator Model ◽  
The Stability ◽  
Predator System ◽  
Type Ii Functional Response

In this paper, a mathematical model consisting of a prey-predator system incorporating infectious disease in the prey has been proposed and analyzed. It is assumed that the predator preys upon the nonrefugees prey only according to the modified Holling type-II functional response. There is a harvesting process from the predator. The existence and uniqueness of the solution in addition to their bounded are discussed. The stability analysis of the model around all possible equilibrium points is investigated. The persistence conditions of the system are established. Local bifurcation analysis in view of the Sotomayor theorem is carried out. Numerical simulation has been applied to investigate the global dynamics and specify the effect of varying the parameters. It is observed that the system has a chaotic dynamics.

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