The Birth of Limit Cycles in Cournot Oligopoly Models with Time Delays

Abstract

We consider the fate of output in the Cournot oligopoly model when the equilibrium is locally unstable. We discuss types of nonlinearities which may be present to bound the motion and introduce time lags in production and information which may serve as bifurcation parameters. In the case of identical firms we apply the Hopf bifurcation theorem to determine conditions under which limit cycle motion is born.