Abstract:
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 duo-poly 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 Nash-equilibrium 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.
Received: 20.05.2015 Revised: 07.09.2015
Document Type:
Article
UDC:519.710.34; 330.46
Language: Russian
Citation:
E. V. Orlova, “Model for economic interests agreement in duopoly’s making price decisions”, Computer Research and Modeling, 7:6 (2015), 1309–1329
\Bibitem{Orl15}
\by E.~V.~Orlova
\paper Model for economic interests agreement in duopoly’s making price decisions
\jour Computer Research and Modeling
\yr 2015
\vol 7
\issue 6
\pages 1309--1329
\mathnet{http://mi.mathnet.ru/crm295}
\crossref{https://doi.org/10.20537/2076-7633-2015-7-6-1309-1329}
Linking options:
https://www.mathnet.ru/eng/crm295
https://www.mathnet.ru/eng/crm/v7/i6/p1309
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