| Article ID: | iaor20118926 |
| Volume: | 218 |
| Issue: | 5 |
| Start Page Number: | 1568 |
| End Page Number: | 1576 |
| Publication Date: | Nov 2011 |
| Journal: | Applied Mathematics and Computation |
| Authors: | Peng Jing, Miao Zehua, Peng Fang |
| Keywords: | simulation, programming: nonlinear, programming: dynamic |
A nonlinear dynamic triopoly game model is studied based on the theory of nonlinear dynamics and previous researches in this paper. A lagged structure is introduced to the model to study stability conditions of the Nash equilibrium under a local adjustment process when players price their products with delayed bounded rationality. Numerical simulations are provided to demonstrate the complexity of system evolvement and influence of the strategy of delayed bounded rationality on system stability. We find that besides the lagged structure, suitable delayed parameters are also important factors to eliminate chaos or expand the stable region of the system, and various players’ adjustment parameters have different effect on stability of the system.