Dynamics of a delayed duopoly game with bounded rationality. (English) Zbl 1205.91116
Summary: A bounded rationality duopoly game with delay is formulated. Its dynamical evolution is analyzed. The existence of an economic equilibrium of the game is derived. The local stability analysis has been carried out. The analysis showed that firms using delayed bounded rationality have a higher chance of reaching a Nash equilibrium point. Numerical simulations were used to show bifurcation diagrams and phase portraits.
MSC:
| 91B55 | Economic dynamics |
| 91A26 | Rationality and learning in game theory |
| 91B54 | Special types of economic markets (including Cournot, Bertrand) |
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