Complex Dynamics of a Cournot Quantum Duopoly Game with Memory and Heterogeneous Players

Previous authors tend to consider a certain range of values of the parameters involved in a game, not taking into account other possible values. In this article, a quantum dynamical Cournot duopoly game with memory and heterogeneous players (one of them is boundedly rational and the other one, a nai...

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Bibliographic Details
Published in:Entropy (Basel, Switzerland) Switzerland), 2022-09, Vol.24 (10), p.1333
Main Authors: Garcia-Perez, Luis, Grau-Climent, Juan, Alonso-Sanz, Ramon, Losada, Juan C
Format: Article
Language:English
Subjects:
Complex systems
Duopolies
Economics
Game theory
Games
heterogeneous players
local stability analysis
Mathematical models
Mathematical research
Memory
Parameters
Players
profit
Profits
quantum Cournot duopoly game
Quantum entanglement
Stability analysis
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Summary:Previous authors tend to consider a certain range of values of the parameters involved in a game, not taking into account other possible values. In this article, a quantum dynamical Cournot duopoly game with memory and heterogeneous players (one of them is boundedly rational and the other one, a naive player) is studied, where the quantum entanglement can be greater than one and the speed of adjustment can be negative. In this context, we analyzed the behavior of the local stability and the profit in those values. Considering the local stability, it is observed that the stability region increases in the model with memory regardless of whether the quantum entanglement is greater than one or whether the speed of adjustment is negative. However, it is also shown that the stability is greater in the negative than in the positive zone of the speed of adjustment and, therefore, it improves the results obtained in previous experiments. This increase of stability enables higher values of speed of adjustment and, as a result of that, the system reaches the stability faster, resulting in a remarkable economic advantage. Regarding the behavior of the profit with these parameters, the principal effect shown is that the application of memory causes a certain delay in the dynamics. Through this article, all these statements are analytically proved and widely supported with several numerical simulations, using different values of the memory factor, the quantum entanglement, and the speed of adjustment of the boundedly rational player.
ISSN:1099-4300
1099-4300
DOI:10.3390/e24101333