Comparison of different solutions to a duopoly with isoelastic demand function

2016 ◽  
Author(s):  
Adyda Ibrahim
Keyword(s):  
Demand Function ◽  
Isoelastic Demand Function

scholarly journals Local Stability of Cournot Equilibrium as the Number of Firms Increases

2021 ◽  
pp. 972-980
Author(s):  
Adyda Ibrahim ◽  
Nerda Zura Zaibidi ◽  
Azizan Saaban
Keyword(s):  
Local Stability ◽  
Marginal Cost ◽  
Demand Function ◽  
Cournot Oligopoly ◽  
Cournot Equilibrium ◽  
Adaptive Expectations ◽  
The Third ◽  
Decision Mechanisms ◽  
Isoelastic Demand Function ◽  
Number Of Firms

In this paper, a Cournot oligopoly with isoelastic demand function and constant marginal cost is considered. The local stability conditions of the Cournot equilibrium are determined for four models with different decision mechanisms. In the first model, firms adjust their outputs using the best reply response with naive expectations. The second model is a generalization of the first one, where firms have adaptive expectations. Meanwhile, the third and fourth models adopt the bounded rationality and local monopolistic approximation, respectively. The results show that, in the case of identical firms, the Cournot equilibrium is always stable when the firms adopt the local monopolistic approximation mechanism.

Heterogeneous triopoly game with isoelastic demand function

2011 ◽  
Vol 68 (1-2) ◽  
pp. 187-193 ◽  
Author(s):  
Fabio Tramontana ◽  
Abd Elalim Abdo Elsadany
Keyword(s):  
Demand Function ◽  
Isoelastic Demand Function

scholarly journals Analysis of Triopoly Game with Isoelastic Demand Function and Heterogeneous Players

2012 ◽  
Vol 2012 ◽  
pp. 1-16 ◽  
Author(s):  
Hong-Xing Yao ◽  
Lian Shi ◽  
Hao Xi
Keyword(s):  
Demand Function ◽  
Initial Conditions ◽  
Equilibrium Points ◽  
Game Model ◽  
Bifurcation Diagrams ◽  
Heterogeneous Players ◽  
Sensitive Dependence ◽  
Linear Demand ◽  
Isoelastic Demand Function ◽  
Asymptotic Stability Conditions

We analyze a triopoly game model with fully heterogeneous players when the demand function is isoelastic. The three players were considered to be bounded rational, adaptive, and naïve. Existing equilibrium points and their locally asymptotic stability conditions are studied. Complexity of the dynamical system is examined by means of numerical simulations, such as period cycles, bifurcation diagrams, strange attractors and sensitive, dependence on initial conditions. This paper extends the result of Tramontana (2010) who considered a heterogeneous duopoly with isoelastic demand function. Comparisons with respect to the heterogeneous triopoly model of Elabbasy et al. (2009) assuming linear demand function are performed.

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