A continuous time Cournot duopoly with delays. (October 2015)

• Record Type: Journal Article
• Authors: Gori, Luca; Guerrini, Luca; Sodini, Mauro
• Is Part Of: Chaos, solitons and fractals. Volume 79(2015)
• Page Start: 166
• Page End: 177
• Publication Date: 2015-10
• Subjects: Chaotic behavior in systems -- Periodicals; Solitons -- Periodicals; Fractals -- Periodicals; Chaotic behavior in systems; Fractals; Solitons; Periodicals; 003.7
• DOI: 10.1016/j.chaos.2015.01.020
• Languages: English
• ISSNs: 0960-0779

Abstract

Abstract: This paper extends the classical repeated duopoly model with quantity-setting firms of Bischi et al. (1998) by assuming that production of goods is subject to some gestation lags but exchanges take place continuously in the market. The model is expressed in the form of differential equations with discrete delays. By using some recent mathematical techniques and numerical experiments, results show some dynamic phenomena that cannot be observed when delays are absent. In addition, depending on the extent of time delays and inertia, synchronisation failure can arise even in the event of homogeneous firms.