Stability of vertically differentiated Cournot and Bertrand-type models when firms are boundedly rational

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• 作者：Joaquín Andaluz ; Gloria Jarne
• 关键词：Vertical product differentiation ; Bertrand competition ; Cournot competition ; Bounded rationality ; Dynamic stability ; Bifurcation
• 刊名：Annals of Operations Research
• 出版年：2016
• 出版时间：March 2016
• 年：2016
• 卷：238
• 期：1-2
• 页码：1-25
• 全文大小：1,815 KB
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• 作者单位：Joaquín Andaluz (1)
  Gloria Jarne (1)
  
  1. Department of Economic Analysis, University of Zaragoza, Gran Vía, 2, 50005, Saragossa, Spain
  
• 刊物类别：Business and Economics
• 刊物主题：Economics
  Operation Research and Decision Theory
  Combinatorics
  Theory of Computation
  
• 出版者：Springer Netherlands
• ISSN：1572-9338

文摘

This paper compares the dynamic of Cournot and Bertrand duopolies with vertical product differentiation and under bounded rationality. We find that an increase in the product differentiation degree destabilizes the Nash equilibrium under quantity competition, while the Bertrand–Nash equilibrium becomes more stable. From a global dynamic analysis, we show that an increase in the firms’ adjustment speed constitutes a source of complexity in both models. There is a cascade of flip bifurcations leading to increasingly complex attractors, and there are global bifurcations generating complex basins of attraction.