The research on Cournot–Bertrand duopoly model with heterogeneous goods and its complex characteristics
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This paper details the research of the Cournot–Bertrand duopoly model with the application of nonlinear dynamics theory. We analyze the stability of the fixed points by numerical simulation; from the result we found that there exists only one Nash equilibrium point. To recognize the chaotic behavior of the system, we give the bifurcation diagram and Lyapunov exponent spectrum along with the corresponding chaotic attractor. Our study finds that either the change of output modification speed or the change of price modification speed will cause the market to the chaotic state which is disadvantageous for both of the firms. The introduction of chaos control strategies can bring the market back to orderly competition. We exert control on the system with the application of the state feedback method and the parameter variation control method. The conclusion has great significance in theory innovation and practice.
KeywordsDynamics Duopoly model Nash equilibrium Bifurcation Chaos control
1. This work was supported by Doctoral Fund of Ministry of Education of China 20090032110031.
2. Supported by National Natural Science Foundation of China 61273231.
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