A continuous time Cournot duopoly with delays

Luca Gori (), Luca Guerrini () and Mauro Sodini

MPRA Paper from University Library of Munich, Germany

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 on 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.

Keywords: Chaos; Cournot duopoly; Time delays (search for similar items in EconPapers)
JEL-codes: C62 D43 L13 (search for similar items in EconPapers)
Date: 2015-02-21
New Economics Papers: this item is included in nep-com
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Citations: View citations in EconPapers (8)

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Journal Article: A continuous time Cournot duopoly with delays (2015)
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