CHAOTIC PATTERNS IN COURNOT COMPETITION

A. van Witteloostuijn*, A. van Lier

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Chaos theory offers a new mode of analyzing the complexity of nonlinear (economic) dynamics. A growing list of applications is mainly focused on modeling macroeconomic (growth and business) cycles and dynamic (consumer's and firms') choice. This paper provides a nonlinear dynamic model of Cournot competition. The model improves upon Rand (1978) and Dana and Montrucchio (1986) by permitting monopoly output to be positive. The existence of chaotic regimes is proven and simulation experiments illustrate the implications.

Original languageEnglish
Pages (from-to)161-185
Number of pages25
JournalMetroeconomica
Volume41
Issue number2
DOIs
Publication statusPublished - 1 Jan 1990
Externally publishedYes

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