Abstract
This paper considers a dynamic duopoly Cournot model based on nonlinear cost functions. The model with heterogeneous players and the spillover effect is applied to the Chinese fixed broadband telecom market. We have studied its dynamic game process. The existence and stability of the Nash equilibrium of the system have been discussed. Simulations are used to show the complex dynamical behaviors of the system. The results illustrate that altering the relevant parameters of system can affect the stability of the Nash equilibrium point and cause chaos to occur. With the use of the delay feedback control method, the chaotic behavior of the model has been stabilized at the Nash equilibrium point. The analysis and results will be of great importance for the Chinese fixed broadband telecom market.
Highlights
The classical oligopoly model was proposed by the French economist Augustine Cournot
To study the competitive process of the Chinese fixed broadband market, this paper considers a dynamical Cournot model, which is provided with heterogeneous players, nonlinear cost functions, and the spillover effect
Based on the differences of the development of the operators, this paper sets up one dynamic game model with heterogeneous operators
Summary
The classical oligopoly model was proposed by the French economist Augustine Cournot. On the basis of classic Cournot and Bertrand models, many factors such as bounded rationality, nonlinear cost, the spillover effect, delayed decision-making, and incomplete information have been introduced into game models [1,2,3,4,5,6,7]. In these studies, researchers have presented improved dynamical oligopoly game models and discussed the complicated dynamics of the whole game process. Discrete Dynamics in Nature and Society phenomena of the fixed broadband market are delayed and even eliminated gradually
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