Nonlinear Delay Monopoly with Bounded Rationality
The purpose of this paper is to study dynamics of a monopolistic firm in a continuous-time framework. The firm is assumed to be boundedly rational and to experience time delays in obtaining and implementing information on output. A dynamic adjustment process is based on the gradient of the expected profit. The paper is divided into three parts: We examine delay effects on dynamics caused by one-time delay and twotime delays in the first two parts. Global dynamics and analytical results on local dynamics are numerically confirmed in the third part. Four main results are demonstrated. First, the stability switch from stability to instability occurs if the one-time delay is sufficiently large. Second, the alternation of stability and instability can continue if two-time delays are involved. Third, the birth of Hopf bifurcation is analytically shown if stability is lost. Finally, in a bifurcation process, there are a period-doubling cascade to chaos and a period-halving cascade to the period-two cycle if two-time delays are relatively large.
single and multiple fixed time delays Hopf bifurcation bounded rationality stability switch nonlinear monopoly
Akio Matsumoto Ferenc Szidarovszky
Department of Economics, Chuo University, 742-1, Higashi-Nakano, Hachioji, Tokyo, 192-0393, Japan Department of Systems and Industrial Engineering, University of Arizona, Tucson, Arizona, 85721-0029
国际会议
The Tenth International Conference on Information and Management Sciences(IMS)(第十届信息与管理科学国际会议)
拉萨
英文
282-292
2011-08-06（万方平台首次上网日期，不代表论文的发表时间）