A heterogenous Cournot duopoly with delay dynamics: Hopf bifurcations and stability switching curves

Nicolo' Pecora, Mauro Sodini

Research output: Contribution to journalArticlepeer-review

19 Citations (Scopus)

Abstract

This article considers a Cournot duopoly model in a continuous-time framework and analyze its dynamic behavior when the competitors are heterogeneous in determining their output decision. Specifically the model is expressed in the form of differential equations with discrete delays. The stability conditions of the unique Nash equilibrium of the system are determined and the emergence of Hopf bifurcations is shown. Applying some recent mathematical techniques (stability switching curves) and performing numerical simulations, the paper confirms how different time delays affect the stability of the economy.
Original languageEnglish
Pages (from-to)36-46
Number of pages11
JournalCOMMUNICATIONS IN NONLINEAR SCIENCE & NUMERICAL SIMULATION
Volume58
DOIs
Publication statusPublished - 2018

Keywords

  • Bounded rationality
  • Duopoly model
  • Hopf bifurcation
  • Stability switch
  • Time delay

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