Routes to Complexity Induced by Constraints in Cournot Oligopoly Games with Linear Reaction Functions

Gian Italo Bischi and Lamantia Fabio ()
Additional contact information
Lamantia Fabio: University of Calabria

Studies in Nonlinear Dynamics & Econometrics, 2012, vol. 16, issue 2, 30

Abstract: Within a classical discrete-time Cournot oligopoly model with linear demand and quadratic cost functions, minimum and maximum production constraints are imposed in order to explore their effects on the dynamic of the system. Due to the presence of such constraints, the dynamic model assumes the form of a continuous piecewise linear map of the plane. The study of Nash equilibria of the oligopoly game, together with an analytical and numerical investigation of the different kinds of attractors of the dynamical system, shows how the presence of production constraints generates so called border collision bifurcations, a kind of global bifurcations recently introduced in the literature on non-smooth dynamical systems, which gives rise to a quite rich spectrum of dynamic scenarios, characterized by drastic changes in the qualitative dynamic properties of the system.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://doi.org/10.1515/1558-3708.1935 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:sndecm:v:16:y:2012:i:2:n:4

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/snde/html

DOI: 10.1515/1558-3708.1935

Access Statistics for this article

Studies in Nonlinear Dynamics & Econometrics is currently edited by Bruce Mizrach

More articles in Studies in Nonlinear Dynamics & Econometrics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().