Asymmetric Information on Price Can Affect Bertrand Duopoly Players with the Gradient-Based Mechanism
Author
Source
Mathematical Problems in Engineering
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-12-10
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
We study a Bertrand duopoly game in which firms adopt a gradient-based mechanism to update their prices.
In this competition, one of the firms knows somehow the price adopted by the other firm next time step.
Such asymmetric information of the market price possessed by one firm gives interesting results about its stability in the market.
Under such information, we use the bounded rationality mechanism to build the model describing the game at hand.
We calculate the equilibrium points of the game and study their stabilities.
Using different sets of parameter values, we show that the interior equilibrium point can be destabilized through flip and Neimark–Sacker bifurcations.
We compare the region of stability of the proposed model with a classical Bertrand model without asymmetric information.
The results show that the proposed game’s map is noninvertible with type Z0−Z2 or Z1−Z3, while the classical model is of type Z0−Z2 only.
This explains the quite complicated basins of attraction given for the proposed map.
American Psychological Association (APA)
Askar, S. S.. 2020. Asymmetric Information on Price Can Affect Bertrand Duopoly Players with the Gradient-Based Mechanism. Mathematical Problems in Engineering،Vol. 2020, no. 2020, pp.1-12.
https://search.emarefa.net/detail/BIM-1196963
Modern Language Association (MLA)
Askar, S. S.. Asymmetric Information on Price Can Affect Bertrand Duopoly Players with the Gradient-Based Mechanism. Mathematical Problems in Engineering No. 2020 (2020), pp.1-12.
https://search.emarefa.net/detail/BIM-1196963
American Medical Association (AMA)
Askar, S. S.. Asymmetric Information on Price Can Affect Bertrand Duopoly Players with the Gradient-Based Mechanism. Mathematical Problems in Engineering. 2020. Vol. 2020, no. 2020, pp.1-12.
https://search.emarefa.net/detail/BIM-1196963
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1196963