Controlling chaos in an economic model

Liang Chen and Guanrong Chen

Physica A: Statistical Mechanics and its Applications, 2007, vol. 374, issue 1, 349-358

Abstract: A Cournot duopoly, with a bounded inverse demand function and different constant marginal production costs, can be modeled as a discrete-time dynamical system, which exhibits complex bifurcating and chaotic behaviors. Based on some essential features of the model, we show how bifurcation and chaos can be controlled via the delayed feedback control method. We then propose and evaluate an adaptive parameter-tuning algorithm for control. In addition, we discuss possible economic implications of the chaos control strategies described in the paper.

Keywords: Chaos; Control; Delayed feedback; Cournot; Oligopoly (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:374:y:2007:i:1:p:349-358

DOI: 10.1016/j.physa.2006.07.022

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