The dynamics of a triopoly Cournot game when the competitors operate under capacity constraints

This article considers Cournot oligopoly with three competitors, given an iso-elastic demand function, and cost functions that asymptotically go to infinity when capacity limits are approached. It is shown that for some parameter values (capacity limits) the Cournot equilibrium point loses stability...

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Bibliographic Details
Published in:Chaos, solitons and fractals solitons and fractals, 2006, Vol.28 (2), p.403-413
Main Authors: Puu, Tönu, Marín, Manuel Ruíz
Format: Article
Language:English
Subjects:
Business and economics
Economics
Ekonomi
Nationalekonomi
SAMHÄLLSVETENSKAP
SOCIAL SCIENCES
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Summary:This article considers Cournot oligopoly with three competitors, given an iso-elastic demand function, and cost functions that asymptotically go to infinity when capacity limits are approached. It is shown that for some parameter values (capacity limits) the Cournot equilibrium point loses stability through a Neimark-Sacker bifurcation. In addition global bifurcation scenarios are simulated numerically, and some are illustrated through Arnol’d tongues in the parameter plane.
ISSN:0960-0779
1873-2887
1873-2887
DOI:10.1016/j.chaos.2005.05.034