Conditions for stable equilibrium in Cournot duopoly models with tax evasion and time delay

We provide conditions for stable equilibrium in Cournot duopoly models with tax evasion and time delay. We prove that our conditions actually imply asymptotically stable equilibrium and delay independence. Conditions include the same marginal cost and equal probability for evading taxes. We give exa...

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Bibliographic Details
Published in:Chaos (Woodbury, N.Y.) N.Y.), 2020-01, Vol.30 (1), p.013142-013142
Main Authors: Villafuerte-Segura, Raúl, Alvarado-Santos, Eduardo, Itzá-Ortiz, Benjamín A.
Format: Article
Language:English
Subjects:
Duopoly
Economic models
Equilibrium
Tax evasion
Taxes
Time lag
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Summary:We provide conditions for stable equilibrium in Cournot duopoly models with tax evasion and time delay. We prove that our conditions actually imply asymptotically stable equilibrium and delay independence. Conditions include the same marginal cost and equal probability for evading taxes. We give examples of cost and inverse demand functions satisfying the proposed conditions. Some economic interpretations of our results are also included.
ISSN:1054-1500
1089-7682
DOI:10.1063/1.5131266