Dynamics analysis and chaos control of a duopoly game with heterogeneous players and output limiter

Jian-guo Du, Yue-qian Fan, Zhao-han Sheng and Yun-zhang Hou

Economic Modelling, 2013, vol. 33, issue C, 507-516

Abstract: In actual economies, players sometimes would offer an upper limiter to their output due to capacity constraints, financial constraints and cautious response to uncertainty in the world, or offer a lower limiter to their output due to economies of scale or break-even consideration. In this paper, we discuss a dynamic duopoly game with heterogeneous players by assuming that one of them imposes an upper limiter on output, and the other one imposes a lower limiter. We analyze how the limiter affects the dynamics of output and the performance of players, and explore the number of the equilibrium points and the distribution of conditioned equilibrium points of the model. We then discuss the stable region of conditioned equilibrium. The theoretical results and numerical experiments show that adding appropriate limiter can make the system more robust, and even get rid of its chaos. The numerical results show that chaotic output dynamics can be beneficial to one firm but harmful to the other, and can also be harmful to both of them, and also show that adding appropriate limiter can improve the performance of the player.

Keywords: Duopoly games; Limiter; Conditioned equilibrium; Chaos control; Performance (search for similar items in EconPapers)
JEL-codes: C62 C68 D21 D43 L13 L25 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999313001879
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:33:y:2013:i:c:p:507-516

DOI: 10.1016/j.econmod.2013.04.045

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().