Model for economic interests agreement in duopoly’s making price decisions

Orlova E.V.
 pdf (1271K)  / List of references

The model of market pricing in duopoly describing the prices dynamics as a two-dimensional map is presented. It is shown that the fixed point of the map coincides with the local Nash-equilibrium price in duopoly game. There have been numerically identified a bifurcation of the fixed point, shown the scheme of transition from periodic to chaotic mode through a doubling period. To ensure the sustainability of local Nashequilibrium price the controlling chaos mechanism has been proposed. This mechanism allows to harmonize the economic interests of the firms and to form the balanced pricing policy.

Keywords: two-dimensional map, stability of fixed point, bifurcation analysis, price competition, control of market prices, strategic interaction of firms, Nash-equilibrium
Citation in English: Orlova E.V. Model for economic interests agreement in duopoly’s making price decisions // Computer Research and Modeling, 2015, vol. 7, no. 6, pp. 1309-1329
Citation in English: Orlova E.V. Model for economic interests agreement in duopoly’s making price decisions // Computer Research and Modeling, 2015, vol. 7, no. 6, pp. 1309-1329
DOI: 10.20537/2076-7633-2015-7-6-1309-1329
URL: http://crm-en.ics.org.ru/journal/article/2404/
Creative Commons License This work is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.
Views (last year): 10. Citations: 2 (RSCI).

Indexed in Scopus

Full-text version of the journal is also available on the web site of the scientific electronic library eLIBRARY.RU

The journal is included in the Russian Science Citation Index

The journal is included in the RSCI

International Interdisciplinary Conference "Mathematics. Computing. Education"

Copyright © 2009–2024 Institute of Computer Science