STATISTICAL DYNAMICS IN PIECEWISE LINEAR COURNOT GAME WITH HETEROGENEOUS DUOPOLISTS

Akio Matsumoto ()
Additional contact information
Akio Matsumoto: Department of Economics, Chuo University, 742-1 Higashi-Nakano, Hachioji, Tokyo, 192-0393, Japan

International Game Theory Review (IGTR), 2004, vol. 06, issue 03, 295-321

Abstract: We study a Cournot duopoly dynamic model in which reaction functions are piecewise linear. Such a model typically generates ergodic chaos when it involves strong nonlinearites. To investigate statistical properties, we construct explicit forms of density functions associated with chaotic trajectories. We demonstrate that the long-run average behavior possesses regular properties although each chaotic trajectory exhibits irregular motions. In particular, the ratios of the average outputs and the average profits are the same as those of Cournot outputs and Cournot profits.

Keywords: Nonlinear Cournot game; statistical dynamics; piecewise linear dynamical system; Subject Classification: C62; Subject Classification: C63; Subject Classification: D43 (search for similar items in EconPapers)
JEL-codes: B4 C0 C6 C7 D5 D7 M2 (search for similar items in EconPapers)
Date: 2004
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S021919890400023X
Access to full text is restricted to subscribers

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:wsi:igtrxx:v:06:y:2004:i:03:n:s021919890400023x

Ordering information: This journal article can be ordered from

DOI: 10.1142/S021919890400023X

Access Statistics for this article

International Game Theory Review (IGTR) is currently edited by David W K Yeung

More articles in International Game Theory Review (IGTR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().