Effect of information asymmetry in Cournot duopoly game with bounded rationality. (English) Zbl 1433.91047
Summary: We investigate the effect of information asymmetry on a dynamic Cournot duopoly game with bounded rationality. Concretely, we study how one player’s possession of information about the other player’s behavior in a duopoly affects the stability of the Cournot-Nash equilibrium. We theoretically and numerically show that the information stabilizes the Cournot-Nash equilibrium and suppresses chaotic behavior in the duopoly.
MSC:
| 91A80 | Applications of game theory |
| 91B54 | Special types of economic markets (including Cournot, Bertrand) |
| 37N40 | Dynamical systems in optimization and economics |
| 91A25 | Dynamic games |
Keywords:
discrete dynamical systems; Cournot duopoly games; bounded rationality; information asymmetry; complex dynamicsReferences:
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