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Nonlinear Dynamics in a Cournot Duopoly with Different Attitudes towards Strategic Uncertainty
Joint Authors
Gori, Luca
Fanti, Luciano
Sodini, Mauro
Source
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-12-18
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Abstract EN
This paper analyses the dynamics of a duopoly with quantity-setting firms and different attitudes towards strategic uncertainty.
By following the recent literature on decision making under uncertainty, where the Choquet expected utility theory is adopted to allow firms to plan their strategies, we investigate the effects of the interaction between pessimistic and optimistic firms on economic dynamics described by a two-dimensional map.
In particular, the study of the local and global behaviour of the map is performed under three assumptions: (1) both firms have complete information on the market demand and adjust production over time depending on past behaviours (static expectations—“best reply” dynamics); (2) both firms have incomplete information and production is adjusted over time by following a mechanism based on marginal profits; and (3) one firm has incomplete information on the market demand and production decisions are based on the behaviour of marginal profits, and the rival has complete information on the market demand and static expectations.
In cases 2 and 3 it is shown that complex dynamics and coexistence of attractors may arise.
The analysis is carried forward through numerical simulations and the critical lines technique.Erratum to “Nonlinear Dynamics in a Cournot Duopoly with Different Attitudes towards Strategic Uncertainty”dx.doi.org/10.1155/2014/673427
American Psychological Association (APA)
Fanti, Luciano& Gori, Luca& Sodini, Mauro. 2013. Nonlinear Dynamics in a Cournot Duopoly with Different Attitudes towards Strategic Uncertainty. Abstract and Applied Analysis،Vol. 2013, no. 2013, pp.1-11.
https://search.emarefa.net/detail/BIM-463441
Modern Language Association (MLA)
Fanti, Luciano…[et al.]. Nonlinear Dynamics in a Cournot Duopoly with Different Attitudes towards Strategic Uncertainty. Abstract and Applied Analysis No. 2013 (2013), pp.1-11.
https://search.emarefa.net/detail/BIM-463441
American Medical Association (AMA)
Fanti, Luciano& Gori, Luca& Sodini, Mauro. Nonlinear Dynamics in a Cournot Duopoly with Different Attitudes towards Strategic Uncertainty. Abstract and Applied Analysis. 2013. Vol. 2013, no. 2013, pp.1-11.
https://search.emarefa.net/detail/BIM-463441
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-463441