Complex dynamics analysis for a remanufacturing duopoly model with nonlinear cost

Yu Peng, Qian Lu, Yue Xiao and Xue Wu

Physica A: Statistical Mechanics and its Applications, 2019, vol. 514, issue C, 658-670

Abstract: In this paper, a duopoly remanufacturing game of competition on output based on boundedly rational expectation is formulated. It involves an original equipment manufacturer (OEM) who makes new products and a third-party independent remanufacture (IR) who uses returned cores to produce differentiated products. Both parties adopt nonlinear cost functions. The study shows that consumer’s willingness-to-pay (WTP) has distinct effects on the OEM’s performance and the stability of Nash equilibrium. We present results on existence, stability and local bifurcations of the equilibrium points. Numerical simulations demonstrate that the system with varying model parameters may be driven to chaos and the loss of stability may be caused by period doubling bifurcations. It is also shown that the state variables feedback and parameter variation method can be used to keep the system from instability and chaos.

Keywords: Chaotic dynamic; Remanufacturing; Nonlinear cost; Chaos control (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:514:y:2019:i:c:p:658-670

DOI: 10.1016/j.physa.2018.09.143

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