Complexity Uncertainty Analysis of Dynamic in a Dual-Channel Energy Supply Chain Model with Heterogeneous Retailers

Ting Li,Junhai Ma,Lijian Sun

doi:10.1155/2015/562158

Abstract

This paper analyses the dynamics of dual-channel energy supply chain model with heterogeneous retailers (as regards the type of expectations’ formation). On the basis of analyzing the stabilities of four fixed points in the three-dimensional dynamic system, local stable regions of Nash equilibrium are obtained. Effects ofSon the stable regions and profit are studied. Simulation results show that the adjustment of price speed has an obvious impact on the complexity of competition. The performances of the model in different period are measured by using the index of average profit. The results show that unstable behavior in economic system is often an unfavorable outcome. So this paper discusses the application of parameters control method when the model is in chaos and then allows the oligarchs to eliminate the negative effects.

Highlights

A number of industrial and governmental statistical reports show that commerce on the Internet is growing at an attractive rate. It means that consumers can get product from dual-channel which is the traditional retail channel and online direct channel in the market
The dual-channel retailer is bounded rationality and the online direct retailer is thinking with adaptive expectations
Equations (14) are conditions for local stability of the Nash equilibrium E4 which is asymptotically stable with the values of (α0, α1, V)

Summary

Introduction

A number of industrial and governmental statistical reports show that commerce on the Internet is growing at an attractive rate It means that consumers can get product from dual-channel which is the traditional retail channel and online direct channel in the market. The dual-channel market describes the structure of oligarch competition model. Several scholars have considered more realistic questions, such as Ma et al [21, 22] who studied bounded rational oligarch game from insurance and R&D input competition market; they found the chaos phenomenon and proposed some control methods. The rest of this paper is as follows: In Section 2, we describe the model of dual-channel Bertrand Game with heterogeneous expectations.

Model Framework

Model Analysis

Numerical Simulations for System

Chaos Control

Conclusions