IDEAS home Printed from https://ideas.repec.org/a/eee/apmaco/v372y2020ics0096300319309610.html
   My bibliography  Save this article

Prediction on the competitive outcome of an enterprise under the adjustment mechanism

Author

Listed:
  • Ren, Jing
  • Sun, Hao
  • Xu, Genjiu
  • Hou, Dongshuang

Abstract

This paper mainly explores adjustment mechanisms influence on the competitive outcome of an enterprise. Based on the estimation of marginal profit, we construct a competitive model of two enterprises with adjustment mechanism, in order to describe the evolution of production. Furthermore, we discuss the competitive outcome under two different circumstances. When these two companies co-exist in a same industry market, the adjustment mechanism is conductive to reducing the gap between them both in output and profit. As a result, that difference can be eliminated in a specific condition, which means that two firms reach the state of Nash equilibrium. However, when one enterprise is dislodged from the market and the other takes full control, the bankrupt one can either pile into the market or lose it all the same in terms of the adjustment mechanism. Numerical simulations are also presented to verify our results.

Suggested Citation

  • Ren, Jing & Sun, Hao & Xu, Genjiu & Hou, Dongshuang, 2020. "Prediction on the competitive outcome of an enterprise under the adjustment mechanism," Applied Mathematics and Computation, Elsevier, vol. 372(C).
    • Handle: RePEc:eee:apmaco:v:372:y:2020:i:c:s0096300319309610
    DOI: 10.1016/j.amc.2019.124969
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0096300319309610
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.amc.2019.124969?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Naimzada, Ahmad K. & Sbragia, Lucia, 2006. "Oligopoly games with nonlinear demand and cost functions: Two boundedly rational adjustment processes," Chaos, Solitons & Fractals, Elsevier, vol. 29(3), pages 707-722.
    2. Szidarovszky, F & Yakowitz, S, 1977. "A New Proof of the Existence and Uniqueness of the Cournot Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(3), pages 787-789, October.
    3. Ding, Zhanwen & Shi, Guiping, 2009. "Cooperation in a dynamical adjustment of duopoly game with incomplete information," Chaos, Solitons & Fractals, Elsevier, vol. 42(2), pages 989-993.
    4. Yi, Sang-Seung, 1997. "On the existence of a unique correlated equilibrium in Cournot oligopoly," Economics Letters, Elsevier, vol. 54(3), pages 235-239, July.
    5. Liu, Luchuan, 1996. "Correlated Equilibrium of Cournot Oligopoly Competition," Journal of Economic Theory, Elsevier, vol. 68(2), pages 544-548, February.
    6. Elsadany, A.A., 2017. "Dynamics of a Cournot duopoly game with bounded rationality based on relative profit maximization," Applied Mathematics and Computation, Elsevier, vol. 294(C), pages 253-263.
    7. K. Gopalsamy & Pei-Xuan Weng, 1993. "Feedback regulation of logistic growth," International Journal of Mathematics and Mathematical Sciences, Hindawi, vol. 16, pages 1-16, January.
    8. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    9. Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-122, February.
    10. Askar, S.S. & Alshamrani, Ahmad M. & Alnowibet, K., 2016. "The arising of cooperation in Cournot duopoly games," Applied Mathematics and Computation, Elsevier, vol. 273(C), pages 535-542.
    11. Agiza, H.N. & Hegazi, A.S. & Elsadany, A.A., 2002. "Complex dynamics and synchronization of a duopoly game with bounded rationality," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 58(2), pages 133-146.
    12. Askar, S.S. & Alnowibet, K., 2016. "Nonlinear oligopolistic game with isoelastic demand function: Rationality and local monopolistic approximation," Chaos, Solitons & Fractals, Elsevier, vol. 84(C), pages 15-22.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Skrynkovskyy, Ruslan & Pavlenchyk, Nataliia & Tsyuh, Svyatoslav & Zanevskyy, Ihor & Pavlenchyk, Anatoliі, 2022. "Economic-mathematical model of enterprise profit maximization in the system of sustainable development values," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(4), December.
    2. Sun, Yanru & Sun, Hao & Sun, Panfei & Jin, Xuanzhu, 2024. "A dynamic surge pricing model throughout product lifecycle," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 226(C), pages 139-151.
    3. Ren, Jing & Sun, Hao & Xu, Genjiu & Hou, Dongshuang, 2023. "Convergence of output dynamics in duopoly co-opetition model with incomplete information," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 207(C), pages 209-225.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Georges SARAFOPOULOS & Kosmas PAPADOPOULOS, 2017. "On A Cournot Duopoly Game With Differentiated Goods, Heterogeneous Expectations And A Cost Function Including Emission Costs," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 16(1), pages 11-22.
    2. Li, Wen-na & Elsadany, A.A. & Zhou, Wei & Zhu, Yan-lan, 2021. "Global Analysis, Multi-stability and Synchronization in a Competition Model of Public Enterprises with Consumer Surplus," Chaos, Solitons & Fractals, Elsevier, vol. 143(C).
    3. S. S. Askar, 2020. "Duopolistic Stackelberg game: investigation of complex dynamics and chaos control," Operational Research, Springer, vol. 20(3), pages 1685-1699, September.
    4. Fanti, Luciano & Gori, Luca, 2012. "The dynamics of a differentiated duopoly with quantity competition," Economic Modelling, Elsevier, vol. 29(2), pages 421-427.
    5. Luciano Fanti & Luca Gori, 2013. "Stability Analysis in a Bertrand Duopoly with Different Product Quality and Heterogeneous Expectations," Journal of Industry, Competition and Trade, Springer, vol. 13(4), pages 481-501, December.
    6. 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.
    7. Askar, S.S., 2018. "Tripoly Stackelberg game model: One leader versus two followers," Applied Mathematics and Computation, Elsevier, vol. 328(C), pages 301-311.
    8. Sameh Askar & Abdulaziz Foul & Tarek Mahrous & Saleh Djemele & Emad Ibrahim, 2021. "Global and Local Analysis for a Cournot Duopoly Game with Two Different Objective Functions," Mathematics, MDPI, vol. 9(23), pages 1-14, December.
    9. PAPADOPOULOS Kosmas & SARAFOPOULOS Georges, 2019. "Dynamics of a Cournot Game with Differentiated Goods and Asymmetric Cost Functions based on Relative Profit Maximization," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    10. Fanti, Luciano & Gori, Luca, 2011. "Cross-ownership and stability in a Cournot duopoly," MPRA Paper 34574, University Library of Munich, Germany.
    11. Peng, Yu & Lu, Qian & Xiao, Yue, 2016. "A dynamic Stackelberg duopoly model with different strategies," Chaos, Solitons & Fractals, Elsevier, vol. 85(C), pages 128-134.
    12. Tramontana, Fabio, 2010. "Heterogeneous duopoly with isoelastic demand function," Economic Modelling, Elsevier, vol. 27(1), pages 350-357, January.
    13. Askar, S.S., 2022. "Nonlinear dynamic investigations and global analysis of a Cournot duopoly game with two different objectives," Chaos, Solitons & Fractals, Elsevier, vol. 155(C).
    14. Mai, Fengxia & Zhang, Jianxiong & Sun, Xiaojie, 2021. "Dynamic analysis of pricing model in a book supply chain," International Journal of Production Economics, Elsevier, vol. 233(C).
    15. Ding, Zhanwen & Shi, Guiping, 2009. "Cooperation in a dynamical adjustment of duopoly game with incomplete information," Chaos, Solitons & Fractals, Elsevier, vol. 42(2), pages 989-993.
    16. Villena, Marcelo J. & Araneda, Axel A., 2017. "Dynamics and stability in retail competition," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 134(C), pages 37-53.
    17. Wang, Kun & Xia, Wenyi & Zhang, Anming & Zhang, Qiong, 2018. "Effects of train speed on airline demand and price: Theory and empirical evidence from a natural experiment," Transportation Research Part B: Methodological, Elsevier, vol. 114(C), pages 99-130.
    18. Claude d'Aspremont & Rodolphe Dos Santos Ferreira & Louis-André Gérard-Varet, 2007. "Competition For Market Share Or For Market Size: Oligopolistic Equilibria With Varying Competitive Toughness," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 761-784, August.
    19. Xiaoliang Li & Bo Li, 2023. "A Bertrand duopoly game with differentiated products reconsidered," Papers 2301.01007, arXiv.org.
    20. Andaluz, J. & Elsadany, A.A. & Jarne, G., 2017. "Nonlinear Cournot and Bertrand-type dynamic triopoly with differentiated products and heterogeneous expectations," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 132(C), pages 86-99.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:apmaco:v:372:y:2020:i:c:s0096300319309610. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/applied-mathematics-and-computation .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.