As mentioned in Chap. 1, Rand (1978) conjectured that with suitable shapes of the reaction functions the outcome of dynamic duopoly would be chaotic. His purely mathematical treatment does not, however, include any substantial economic assumptions under which this becomes true. In what follows a very simple duopoly model, already encountered in Chap. 2, based on traditional microeconomis, will be discussed.
KeywordsBifurcation Diagram Periodic Point Chaotic Attractor Reaction Function Bifurcation Curve
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