Dynamics of a delayed duopoly game with bounded rationality

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Abstract

A bounded rationality duopoly game with delay is formulated. Its dynamical evolution is analyzed. The existence of an economic equilibrium of the game is derived. The local stability analysis has been carried out. The analysis showed that firms using delayed bounded rationality have a higher chance of reaching a Nash equilibrium point. Numerical simulations were used to show bifurcation diagrams and phase portraits.

Original languageEnglish
Pages (from-to)1479-1489
Number of pages11
JournalMathematical and Computer Modelling
Volume52
Issue number9-10
DOIs
StatePublished - Nov 2010
Externally publishedYes

Keywords

  • Chaotic
  • Delayed bounded rationality
  • Duopoly game
  • Strange attractor

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