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2013 The Impact of Cost Uncertainty on Cournot Duopoly Game with Concave Demand Function
S. S. Askar
J. Appl. Math. 2013(SI08): 1-5 (2013). DOI: 10.1155/2013/809795

Abstract

It is reported in the literature that the most fundamental idea to address uncertainty is to begin by condensing random variables. In this paper, we propose Cournot duopoly game where quantity-setting firms use nonlinear demand function that has no inflection points. A random cost function is introduced in this model. Each firm in the model wants to maximize its expected profit and also wants to minimize its uncertainty by minimizing the cost. To handle this multiobjective optimization problem, the expectation and worst-case approaches are used. A model of two rational firms that are in competition and produce homogenous commodities is introduced using an unknown demand function. The equilibrium points of this model are obtained and their dynamical characteristics such as stability, bifurcation, and chaos are investigated. Complete stability and bifurcation analysis are provided. The obtained theoretical results are verified by numerical simulation.

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S. S. Askar. "The Impact of Cost Uncertainty on Cournot Duopoly Game with Concave Demand Function." J. Appl. Math. 2013 (SI08) 1 - 5, 2013. https://doi.org/10.1155/2013/809795

Information

Published: 2013
First available in Project Euclid: 14 March 2014

zbMATH: 06950887
MathSciNet: MR3138938
Digital Object Identifier: 10.1155/2013/809795

Rights: Copyright © 2013 Hindawi

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