An empirical study of a mathematical model for influence of government tax on the price behavior and the stability of market price

DOI10.1155/2020/8097402MaRDI QIDQ2004248zbMATH OpenOpenAlexFDO

Authors Fenglian Wang, Chia-Huei Wu, Sang-Bing Tsai

Publication date 14 October 2020

Published in Mathematical Problems in Engineering (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://doi.org/10.1155/2020/8097402

Mathematics Subject Classification ID

Dynamical systems in optimization and economics (37N40) Microeconomic theory (price theory and economic markets) (91B24) Special types of economic markets (including Cournot, Bertrand) (91B54) Macroeconomic theory (monetary models, models of taxation) (91B64)

Review text

Summary: The fierce competition among enterprises and disordered market price competition have affected the development of the whole regional economy. Government tax subsidies have always been regarded as the advantages of enterprise development, but the mechanism of the influence of government tax on regional economic development, especially the impact on market price, has not been explored. Based on the Bertrand competition, applying chaos control theory, considering the government revenue rate, the influence of government tax on the price behavior and market price stability is analyzed, and then the numerical simulation is carried out. The research shows that the price adjustment of enterprises is a complicated process and government tax is helpful to the stability of market price. The government tax rate increasing can increase the stable region of price equilibrium and reduce the bifurcation and chaos of the price game system.

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Cites work

• Analysis of a nonlinear mixed Cournot game with boundedly rational players
• Price competition between random and assortive matchmakers
• Price competition in a nonlinear differentiated duopoly
• Pricing and equity in cross-regional green supply chains
• Pricing of defaultable options with multiscale generalized Heston's stochastic volatility
• The dynamics of Bertrand model with bounded rationality

Cited in

(2)

• Dynamic analysis of Bertrand game model about taxation of government and subsidy
• Application of an intervention model to the influence of land value increment tax reduction policy on the Taiwan stock market

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