Computation of the Stability and Complexity about Triopoly Price Game Model with Delay Decision

Yuling Wang, Shubing Guo and Shide Duan

Advances in Mathematical Physics, 2017, vol. 2017, issue 1

Abstract: We develop the price game model based on the entropy theory and chaos theory, considering the three enterprises are bounded rationality and using the cost function under the resource constraints; that is, the yield increase will bring increased costs. The enterprises of new model adopt the delay decision with the delay parameters τ1 and τ2, respectively. According to the change of delay parameters τ1 and τ2, the bifurcation, stability, and chaos of the system are discussed, and the change of entropy when the system is far away from equilibrium is considered. Prices and profits are found to lose stability and the evolution of the system tends to the equilibrium state of maximum entropy. And it has a big fluctuation with the increase of τ1 and τ2. In the end, the chaos is controlled effectively. The entropy of the system decreases, and the interior reverts to order. The results of this study are of great significance for avoiding the chaos when the enterprises make price decisions.

Date: 2017
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https://doi.org/10.1155/2017/2717352

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Persistent link: https://EconPapers.repec.org/RePEc:wly:jnlamp:v:2017:y:2017:i:1:n:2717352

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