Cournot duopoly games with isoelastic demands and diseconomies of scale

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Tác giả: Xiaoliang Li

Ngôn ngữ: eng

Ký hiệu phân loại: 330 Economics

Thông tin xuất bản: 2022

Mô tả vật lý:

Bộ sưu tập: Báo, Tạp chí

ID: 194737

Comment: arXiv admin note: substantial text overlap with arXiv:2112.05948In this discussion draft, we investigate five different models of duopoly games, where the market is assumed to have an isoelastic demand function. Moreover, quadratic cost functions reflecting decreasing returns to scale are considered. The games in this draft are formulated with systems of two nonlinear difference equations. Existing equilibria and their local stability are analyzed by symbolic computations. In the model where a gradiently adjusting player and a rational (or a boundedly rational) player compete with each other, diseconomies of scale are proved to have an effect of stability enhancement, which is consistent with the similar results found by Fisher for homogeneous oligopolies with linear demand functions.
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