The dynamics of Bowley's model with bounded rationality

By H. Agiza, A. Hegazi, A. A. Elsadany. 2001

117 citations recorded by the source corpus.

Abstract A nonlinear dynamical system which describe the time evolution of n-competitors in a Cournot game (Bowley's model) with bounded rationality is analyzed. The existence and stability of the equilibria of this system is studied. The stability conditions of the steady states for two and three players are explicitly computed. Complex behavior such as cycles and chaotic behavior are observed by numerical simulation. Delayed Bowley's with bounded rationality in monopoly is studied. We show that firms using bounded rationality with delay has a higher chance of reaching Nash equilibrium.

Subfields: Economics and Econometrics, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/5381ceb07b5873f18720aa2d47a7879336c70b70

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In Economics and Econometrics

1. Qingli Da
2. Jixiang Zhang
3. Yanhua Wang

In Management Science and Operations Research

1. Qingli Da
2. Jixiang Zhang
3. Yanhua Wang
4. Zeshui Xu
5. Ronald R. Yager

Citations in the corpus

• RETRACTED: Analysis of nonlinear duopoly game with heterogeneous players (2007, methodology): “In Agiza (1998, 1999) and Agiza et al. (2001, 2002), M. Kopel studied the dynamics of oligopoly models with more players and other modification of Puu's model.”