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Investigations of Nonlinear Triopoly Models with Different Mechanisms
Joint Authors
Source
Issue
Vol. 2019, Issue 2019 (31 Dec. 2019), pp.1-15, 15 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2019-12-19
Country of Publication
Egypt
No. of Pages
15
Main Subjects
Abstract EN
This paper studies the dynamic characteristics of triopoly models that are constructed based on a 3-dimensional Cobb–Douglas utility function.
The paper presents two parts.
The first part introduces a competition among three rational firms on which their prices are isoelastic functions.
The competition is described by a 3-dimensional discrete dynamical system.
We examine the impact of rationality on the system’s steady state point.
Studying the stability/instability of this point, which is Nash equilibrium and is unique in those models, is illustrated.
Numerically, we give some global analysis of Nash point and its stability.
The second part deals with heterogeneous scenarios.
It consists of two different models.
In the first model, we assume that one competitor adopts the local monopolistic approximation mechanism (LMA) while the other opponents are rational.
The second model assumes two heterogeneous players with LMA mechanism against one rational firm.
Studies show that the stability of NE point of those models is not guaranteed.
Furthermore, simulation shows that when firms behave rational with symmetric costs, the stability of NE point is achievable.
American Psychological Association (APA)
Askar, S. S.& Al-khedhairi, A.. 2019. Investigations of Nonlinear Triopoly Models with Different Mechanisms. Complexity،Vol. 2019, no. 2019, pp.1-15.
https://search.emarefa.net/detail/BIM-1131758
Modern Language Association (MLA)
Askar, S. S.& Al-khedhairi, A.. Investigations of Nonlinear Triopoly Models with Different Mechanisms. Complexity No. 2019 (2019), pp.1-15.
https://search.emarefa.net/detail/BIM-1131758
American Medical Association (AMA)
Askar, S. S.& Al-khedhairi, A.. Investigations of Nonlinear Triopoly Models with Different Mechanisms. Complexity. 2019. Vol. 2019, no. 2019, pp.1-15.
https://search.emarefa.net/detail/BIM-1131758
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1131758