On the non-linear stability of a continuous duopoly model with constant conjectural variation

Abstract

The paper concerns a continuous model governed by a ODE system originated by a discrete duopoly model with bounded rationality, based on constant conjectural variation. The aim of this paper is to show (i) the existence of an absorbing set in the phase space; (ii) linear stability analysis of the critical points of the system; (iii) non-linear, global asymptotic stability of equilibrium of constant conjectural variation.