scholarly journals Exploration of Complex Dynamics for Cournot Oligopoly Game with Differentiated Products

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-13 ◽  
Author(s):  
S. S. Askar ◽  
Mona F. EL-Wakeel ◽  
M. A. Alrodaini
Keyword(s):  
Utility Function ◽  
Complex Dynamics ◽  
Discrete Dynamical System ◽  
Cournot Oligopoly ◽  
Differentiated Products ◽  
Time Step ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
3 Dimensional ◽  
Cournot Game

This paper proposes a Cournot game organized by three competing firms adopting bounded rationality. According to the marginal profit in the past time step, each firm tries to update its production using local knowledge. In this game, a firm’s preference is represented by a utility function that is derived from a constant elasticity of substitution (CES) production function. The game is modeled by a 3-dimensional discrete dynamical system. The equilibria of the system are numerically studied to detect their complex characteristics due to difficulty to get an explicit form for those equilibria. For the proposed utility function, some cases with different value parameters are considered. Numerical simulations are used to provide an experimental evidence for the complex behavior of the evolution of the system. The obtained results show that the system loses its stability due to different types of bifurcations.

scholarly journals On a Cournot Game with Bounded Rational Players, Convex, Log-Linear Demand and Consumer Surplus

2020 ◽  
Author(s):  
Georges Sarafopoulos ◽  
Kosmas Papadopoulos
Keyword(s):  
Dynamical System ◽  
Complex Dynamics ◽  
Chaotic Behavior ◽  
Initial Conditions ◽  
Discrete Dynamical System ◽  
Consumer Surplus ◽  
Cournot Oligopoly ◽  
Cournot Game ◽  
Linear Demand ◽  
Log Linear

Based on the Cournot oligopoly game and the nonlinear dynamics theory, we study the behavior of semi-public enterprises by considering corporate social responsibility into their objectives. The model that is established is a dynamical Cournot-type duopoly model with bounded rationality containing the consumer surplus. We suppose quadratic cost function and a convex, log-linear demand function. The game is modeled with a system of two difference equations. Existence and stability of equilibriums of this system are studied. More complex chaotic and unpredictable trajectories are resulted studying this discrete dynamical system. The complex dynamics of the system are demonstrated numerically via computing Lyapunov numbers, sensitivity dependence on initial conditions, and bifurcation diagrams. Keywords: Cournot duopoly game; Discrete dynamical system; Homogeneous expectations; Stability; Chaotic Behavior; Consumer Surplus.

Public Good Provision Financed by Nonlinear Income Tax Under Reduction of Envy

2019 ◽  
Vol 19 (4) ◽  
Author(s):  
Takuya Obara ◽  
Shuichi Tsugawa
Keyword(s):  
Utility Function ◽  
Public Good ◽  
Income Tax ◽  
Optimal Taxation ◽  
Optimal Level ◽  
Elasticity Of Substitution ◽  
Public Good Provision ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Good Provision

Abstract We examine optimal taxation and public good provision by a government that considers reduction of envy as a constraint. We adopt the extended envy-freeness proposed by Diamantaras and Thomson (1990. “A Refinement and Extension of the No-Envy Concept.” Economics Letters 33: 217–22), called λ-equitability. We derive the modified Samuelson rule under an optimal nonlinear income tax and show, using a constant elasticity of substitution utility function, that the direction of distorting the original Samuelson rule to relax the λ envy-free constraint is crucially determined by the elasticity of substitution. Furthermore, we numerically show that the optimal level of provision increases (decreases) in the degree of envy-freeness when the original Samuelson rule is upwardly (downwardly) distorted.

International reserves: self-insurance and monetary policy in crisis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Francisco de Almeida da Silva Junior
Keyword(s):  
Monetary Policy ◽  
Utility Function ◽  
International Reserves ◽  
Constant Elasticity ◽  
Content Type ◽  
Constant Elasticity Of Substitution ◽  
States Of Nature ◽  
Substitution Elasticities ◽  
Ces Utility Function ◽  
The Impact

PurposeThis work presents a model of a two-period economy to discuss the link between the precautionary motivation for holding international reserves and the country's monetary policy concerns due to a crisis.Design/methodology/approachThere are two possible states of nature in the second period of the economy: a normal state and a crisis state. These states of nature represent uncertainty to the policy maker and he can insure against a crisis. The household has a constant-elasticity-of-substitution (CES) utility function, where utility depends on consumption and money.FindingsBy allowing money in the utility function and in the household financial constraint and considering that the objective of the central bank is to smooth inflation, it is concluded that monetary policy plays a role in the precautionary motivation of holding international reserves.Practical implicationsThe model can be used to calculate optimal reserves holdings in its complete or even in its simplified version. Furthermore, it is possible to evaluate the impact of the intra-temporal substitution elasticity between consumption and real money in the decision of accumulating international reserves.Originality/valueHigher intra-temporal substitution elasticities implies in more insurance via international reserves, and this discussion is not found in the existent literature on international reserves.

scholarly journals Constant elasticity of substitution function based RANSAC for image stitching

2021 ◽  
Vol 336 ◽  
pp. 06032
Author(s):  
Shengbin Zhuang ◽  
Lin Cao ◽  
Yanan Guo
Keyword(s):  
Utility Function ◽  
Feature Matching ◽  
Elasticity Of Substitution ◽  
Image Stitching ◽  
Constant Elasticity ◽  
Matching Algorithm ◽  
Constant Elasticity Of Substitution ◽  
Novel Method ◽  
Return Value ◽  
Ransac Algorithm

Feature matching is very important in image stitching. RANSAC algorithm is a representative algorithm for feature matching. However, RANSAC still has many shortcomings such as a large number of iterations, a large computational complexity and cannot completely eliminate mismatches. To address above problem, in this paper, we propose a novel method termed constant elasticity of substitution function based RANSAC (CES-RANSAC) for image stitching. Specifically, CES-RANSAC improves the RANSAC algorithm by constructing a utility function, optimizing the boundary of the utility function, calculating Cobb-Douglas coefficients. It also introduces Lindahl equilibrium to derive the return value t to help eliminate mismatches. Experiments show that compared with the traditional RANSAC algorithm, CES-RANSAC has improved matching accuracy and increased computational efficiency, which further improves the efficiency of the image matching algorithm.

U.S. ELASTICITIES OF SUBSTITUTION AND FACTOR AUGMENTATION AT THE INDUSTRY LEVEL

2012 ◽  
Vol 17 (4) ◽  
pp. 861-897 ◽  
Author(s):  
Andrew T. Young
Keyword(s):  
Manufacturing Sector ◽  
Weighted Average ◽  
Value Added ◽  
The United States ◽  
Large Majority ◽  
Elasticity Of Substitution ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
First Order ◽  
Industry Level

We provide industry-level estimates of the elasticity of substitution (σ) between capital and labor in the United States. We also estimate rates of factor augmentation. Aggregate estimates are produced. Our empirical model comes from the first-order conditions associated with a constant–elasticity of substitution production function. Our data represent 35 industries at roughly the 2-digit SIC level, 1960–2005. We find that aggregate U.S. σ is likely less than 0.620. σ is likely less than unity for a large majority of individual industries. Evidence also suggests that aggregate σ is less than the value-added share-weighted average of industry σ's. Aggregate technical change appears to be net labor–augmenting. This also appears to be true for the large majority of individual industries, but several industries may be characterized by net capital augmentation. When industry-level elasticity estimates are mapped to model sectors, the manufacturing sector σ is lower than that of services; the investment sector σ is lower than that of consumption.

scholarly journals A growth accounting fejlődése a növekedéselméletek tükrében

Competitio ◽  
2011 ◽  
Vol 10 (1) ◽  
pp. 85-103
Author(s):  
Levente Nádasi
Keyword(s):  
Elasticity Of Substitution ◽  
Growth Accounting ◽  
Economic Literature ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution

Jelen írásban röviden bemutatom az egyes növekedéselméletek fejlődését, számba véve az egyes fejlődési szakaszokban a növekedés legfontosabb forrásainak tekintett tényezőket. Mivel a termelési függvény egyik fontos paramétere, a helyettesítési rugalmasság értéke nem egységnyi, ahogyan azt a nemzetközi vizsgálatokban alkalmazott Cobb–Douglas-termelési függvény feltételezi, és a helyettesítési rugalmasság értéke 1-től eltérő is lehet, szükséges egy általánosabb, CES típusú (Constant Elasticity of Substitution – állandó helyettesítési rugalmasságú) „termelési függvény”-család alkalmazása is. Technikai kérdésként felmerül a termelési tényezők csoportosítása is. A helyettesítési rugalmasság egyben hatékonysági tényező is, ezért a termelési függvény ezen jellemzője kiemelt szerepet kap az elemzésben. Végül összefoglalom azokat a legjelentősebb irodalmakat, amelyek főként a növekedés összetételével (growth accounting) foglalkoznak, és megpróbálnak választ találni arra a kérdésre, hogy mely faktorok játszanak jelentős vagy kevésbé jelentős szerepet a gazdasági növekedésben. A growth accounting erősen összekapcsolódik a növekedéselméletekkel, így a megfelelő pontokon visszautalok az egyes növekedéselméletekre is. Journal of Economic Literature (JEL) kód: E13, O47

scholarly journals Substitution between Immigrant and Native Farmworkers in the United States: Does Legal Status Matter?

2019 ◽  
Vol 10 (1) ◽  
Author(s):  
Xuan Wei ◽  
Gülcan Önel ◽  
Zhengfei Guan ◽  
Fritz Roka
Keyword(s):  
United States ◽  
Legal Status ◽  
Substitution Effect ◽  
The United States ◽  
Elasticity Of Substitution ◽  
Immigrant Workers ◽  
Policy Debate ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Unauthorized Immigrant

AbstractThe policy debate surrounding the employment of immigrant workers in U.S. agriculture centers around the extent to which immigrant farmworkers adversely affect the economic opportunities of native farmworkers. To help answer this question, we propose a three-layer nested constant elasticity of substitution (CES) framework to investigate the substitutability among heterogeneous farmworker groups based on age, skill, and legal status utilizing National Agricultural Workers Survey (NAWS) data from 1989 through 2012. We use farmwork experience and type of task performed as alternative proxies for skill to disentangle the substitution effect between U.S. citizens, authorized immigrants, and unauthorized immigrant farmworkers. Results show that substitutability between the three legal status groups is small; neither authorized nor unauthorized immigrant farmworkers have a significant impact on the employment of native farmworkers.

scholarly journals Non-Constant Elasticity of Substitution and Intermittent Renewable Energy

2020 ◽  
Vol 49 (2) ◽  
pp. 321-359
Author(s):  
Saketh Aleti ◽  
Gal Hochman
Keyword(s):  
Renewable Energy ◽  
Economic Value ◽  
Market Price ◽  
Electricity Consumption ◽  
Electricity Sector ◽  
Elasticity Of Substitution ◽  
Carbon Taxes ◽  
Constant Elasticity ◽  
Fossil Energy ◽  
Constant Elasticity Of Substitution

In this article, we present a model of the electricity sector where generation technologies are intermittent. The economic value of an electricity generation technology is given by integrating its production profile with the market price of electricity. We use estimates of the consumer's intertemporal elasticity of substitution for electricity consumption while parameterizing the model empirically to numerically calculate the elasticity between renewables and fossil energy. We find that there is a non-constant elasticity of substitution between renewable and fossil energy that depends on prices and intermittency. This suggests that the efficacy and welfare effects of carbon taxes and renewable subsidies vary geographically. Subsidizing research into battery technology and tailoring policy for local energy markets can mitigate these distributional side effects while complementing traditional policies used to promote renewable energy.

scholarly journals Macroeconomic Growth in Vietnam Transitioned to Market: An Unrestricted VES Framework

Economies ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 58 ◽  
Author(s):  
Nguyen Ngoc Thach
Keyword(s):  
Economic Growth ◽  
High Speed ◽  
Transition Economy ◽  
Bayes Factor ◽  
Elasticity Of Substitution ◽  
Mcmc Methods ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Labour Share ◽  
The Relationship

The Vietnamese economy has increased at high speed over the transformation decades; however, most recent studies on the economic growth of this country used the Cobb-Douglas or CES (Constant Elasticity of Substitution) production functions, which are unable to explore the relationship between the elasticity of capital-labour substitution and development process, and hence, are not relevant to accessing a dynamic economic system. For that reason, this study is conducted to specify an unrestricted VES (Variable Elasticity of Substitution) production function in a one-sector growth model of Vietnam, highlighted by two characteristics: successful transition from plan to market and rapid progress. The VES is given preference over the CES and the Cobb-Douglas having the elasticity of substitution between capital and labour varying with economic development. By employing a Bayesian nonlinear regression through MCMC methods, the study reported the following findings: (1) the above-unity variable elasticity of capital-labour substitution in an aggregate unrestricted VES function specified for Vietnam shows that the model generates the possibility of endogenous economic growth; (2) the capital share tends to increase, while the labour share faces a downward trend along with the development of Vietnam; (3) the VES is empirically proven through a Bayes factor test to be superior to the CES and Cobb-Douglas for analysis of the growth process of Vietnam, an emerging transition economy.

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