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The study of dynamic process of the triopoly games in chinese 3G telecommunication market

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  • Chen, Fang
  • Ma, Jun Hai
  • Chen, Xiao Qiang

Abstract

At first, the paper described a brief history of communication in China. In 2008, the third generation (3G) telecommunication technologies began to develop. In Chinese 3G telecommunication market, there are three oligopolistic competitors. In order to study competing process of the triopoly, the paper considered a Bertrand model with bounded rational. A triopoly game is modeled by three nonlinear difference equations. By using the theory of bifurcations of dynamical systems, the existence and stability for the equilibria of this system were obtained. Numerical simulations were used to show bifurcations diagrams, the maximum Lyapunov exponent and sensitive dependence on initial conditions. We observed that increasing the speed of adjustment of bounded rational player might change the stability of Nash equilibrium point and cause bifurcation and chaos to occur. Thus, it will be difficult to make strategy and to forecast for each enterprise. It might cause the telecom markets to be irregular. The analysis and results in this paper are important for Chinese telecommunication markets, the same to mathematics.

Suggested Citation

  • Chen, Fang & Ma, Jun Hai & Chen, Xiao Qiang, 2009. "The study of dynamic process of the triopoly games in chinese 3G telecommunication market," Chaos, Solitons & Fractals, Elsevier, vol. 42(3), pages 1542-1551.
  • Handle: RePEc:eee:chsofr:v:42:y:2009:i:3:p:1542-1551
    DOI: 10.1016/j.chaos.2009.03.039
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    References listed on IDEAS

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    1. Yan, Xu & Pitt, Douglas C., 1999. "One country, two systems: contrasting approaches to telecommunications deregulation in Hong Kong China," Telecommunications Policy, Elsevier, vol. 23(3-4), pages 245-260, April.
    2. Zhang, Jixiang & Da, Qingli & Wang, Yanhua, 2007. "Analysis of nonlinear duopoly game with heterogeneous players," Economic Modelling, Elsevier, vol. 24(1), pages 138-148, January.
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    Cited by:

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    2. Xi, Xuan & Zhang, Jixiang, 2020. "Complexity analysis of a decision-making game concerning governments and heterogeneous agricultural enterprises with bounded rationality," Chaos, Solitons & Fractals, Elsevier, vol. 140(C).
    3. Garmani, Hamid & Ait Omar, Driss & El Amrani, Mohamed & Baslam, Mohamed & Jourhmane, Mostafa, 2020. "Analysis of a dynamics duopoly game with two content providers," Chaos, Solitons & Fractals, Elsevier, vol. 131(C).
    4. Xia, Jun, 2017. "China’s telecommunications evolution, institutions, and policy issues on the eve of 5G: A two-decade retrospect and prospect," Telecommunications Policy, Elsevier, vol. 41(10), pages 931-947.
    5. Yi, Qi Guo & Zeng, Xiang Jin, 2015. "Complex dynamics and chaos control of duopoly Bertrand model in Chinese air-conditioning market," Chaos, Solitons & Fractals, Elsevier, vol. 76(C), pages 231-237.

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