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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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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description 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.
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source American Institute of Physics:Jisc Collections:Transitional Journals Agreement 2021-23 (Reading list)
subjects Duopoly
Economic models
Equilibrium
Tax evasion
Taxes
Time lag
title Conditions for stable equilibrium in Cournot duopoly models with tax evasion and time delay
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