Endogenous fluctuations under evolutionary pressure in Cournot competition (Q1864816): Difference between revisions

This paper deals with a simple version of a Cournot duopoly model with a singleinterior Nash equilibrium and a best-reply curve which is linear in the other firm's production level. It is shown that if the best-reply curve is unstable, this may lead to a complecated dynamic. It is also shown that the presented theory could as well be applied to other games with a continuous action space. One numerical experimenmt has been presented for validation.