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Study on a 3-dimensional game model with delayed bounded rationality. (English) Zbl 1229.91223

Summary: A nonlinear dynamic triopoly game model is studied based on the theory of nonlinear dynamics and previous researches in this paper. A lagged structure is introduced to the model to study stability conditions of the Nash equilibrium under a local adjustment process when players price their products with delayed bounded rationality. Numerical simulations are provided to demonstrate the complexity of system evolvement and influence of the strategy of delayed bounded rationality on system stability. We find that besides the lagged structure, suitable delayed parameters are also important factors to eliminate chaos or expand the stable region of the system, and various players’ adjustment parameters have different effect on stability of the system.

MSC:

91B55 Economic dynamics
91A26 Rationality and learning in game theory
91A20 Multistage and repeated games
91B24 Microeconomic theory (price theory and economic markets)
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