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Effect of information asymmetry in Cournot duopoly game with bounded rationality

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  • Ueda, Masahiko

Abstract

We investigate the effect of information asymmetry on a dynamic Cournot duopoly game with bounded rationality. Concretely, we study how one player’s possession of information about the other player’s behavior in a duopoly affects the stability of the Cournot-Nash equilibrium. We theoretically and numerically show that the information stabilizes the Cournot-Nash equilibrium and suppresses chaotic behavior in the duopoly.

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  • Ueda, Masahiko, 2019. "Effect of information asymmetry in Cournot duopoly game with bounded rationality," Applied Mathematics and Computation, Elsevier, vol. 362(C), pages 1-1.
    • Handle: RePEc:eee:apmaco:v:362:y:2019:i:c:46
    DOI: 10.1016/j.amc.2019.06.049
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    References listed on IDEAS

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    7. Bischi, Gian-Italo & Stefanini, Luciano & Gardini, Laura, 1998. "Synchronization, intermittency and critical curves in a duopoly game," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 44(6), pages 559-585.
    8. Angelini, Natascia & Dieci, Roberto & Nardini, Franco, 2009. "Bifurcation analysis of a dynamic duopoly model with heterogeneous costs and behavioural rules," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 79(10), pages 3179-3196.
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    Cited by:

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    3. Carlos Sáenz-Royo & Francisco Chiclana & Enrique Herrera-Viedma, 2022. "Functional Representation of the Intentional Bounded Rationality of Decision-Makers: A Laboratory to Study the Decisions a Priori," Mathematics, MDPI, vol. 10(5), pages 1-17, February.
    4. Sameh S. Askar, 2020. "The Influences of Asymmetric Market Information on the Dynamics of Duopoly Game," Mathematics, MDPI, vol. 8(7), pages 1-12, July.
    5. Wang, Chun & Pi, Jinxiu & Zhou, Die & Tang, Wei & Yang, Guanghui, 2023. "Dynamics of n-person Cournot games with asymmetric information and heterogeneous expectations," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 618(C).
    6. Sameh S Askar & Abdulrahman Al-Khedhairi, 2020. "Local and Global Dynamics of a Constraint Profit Maximization for Bischi–Naimzada Competition Duopoly Game," Mathematics, MDPI, vol. 8(9), pages 1-16, August.
    7. Anton Badev & Stanimir Kabaivanov & Petar Kopanov & Vasil Zhelinski & Boyan Zlatanov, 2024. "Long-Run Equilibrium in the Market of Mobile Services in the USA," Mathematics, MDPI, vol. 12(5), pages 1-21, February.
    8. Yulia Dzhabarova & Stanimir Kabaivanov & Margarita Ruseva & Boyan Zlatanov, 2020. "Existence, Uniqueness and Stability of Market Equilibrium in Oligopoly Markets," Administrative Sciences, MDPI, vol. 10(3), pages 1-32, September.

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