We propose a modelling approach to study Cournotian oligopolies of boundedly rational firms which continuously update production decisions on the basis of information collected periodically. The model consists of a system of differential equations with piecewise constant arguments, which can be recast into a system of difference equations. Considering different economic settings, we study the local stability of equilibrium, proving the destabilizing role of the time lag between two consecutive learning activities. We investigate some particular families of oligopolies showing the occurrence of both flip and Neimark–Sacker bifurcations, as well as the evidence of multistability with the coexistence between different attractors, occurring when oligopolies consisting of both technologically different and identical firms are studied

Cavalli, F., Naimzada, A., Sodini, M. (2018). Oligopoly models with different learning and production time scales. DECISIONS IN ECONOMICS AND FINANCE, 41(2), 297-312 [10.1007/s10203-018-0225-0].

Oligopoly models with different learning and production time scales

Cavalli, Fausto
;
Naimzada, Ahmad;
2018

Abstract

We propose a modelling approach to study Cournotian oligopolies of boundedly rational firms which continuously update production decisions on the basis of information collected periodically. The model consists of a system of differential equations with piecewise constant arguments, which can be recast into a system of difference equations. Considering different economic settings, we study the local stability of equilibrium, proving the destabilizing role of the time lag between two consecutive learning activities. We investigate some particular families of oligopolies showing the occurrence of both flip and Neimark–Sacker bifurcations, as well as the evidence of multistability with the coexistence between different attractors, occurring when oligopolies consisting of both technologically different and identical firms are studied
Articolo in rivista - Articolo scientifico
Bifurcations; Cournot oligopolies; Differential equations with piecewise constant argument; Learning and production decisions; Multistability; Stability; Finance; Economics, Econometrics and Finance (all)2001 Economics, Econometrics and Finance (miscellaneous)
English
2018
41
2
297
312
reserved
Cavalli, F., Naimzada, A., Sodini, M. (2018). Oligopoly models with different learning and production time scales. DECISIONS IN ECONOMICS AND FINANCE, 41(2), 297-312 [10.1007/s10203-018-0225-0].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/215138
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