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Heterogeneous triopoly game with isoelastic demand function

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Abstract

In this paper, we analyze a triopolistic market with heterogeneous firms when the demand function is isoelastic. We consider the same heterogeneous firms as Elabbasy et al. (Comput. Math. Appl. 57:488–499, 2009) introducing a nonlinearity in the demand function instead of the cost function. Stability conditions of the two equilibrium points and complex dynamics are studied. The main novelty consists of the double route to chaos, via period-doubling bifurcations and via Neimark–Sacker bifurcation. The two routes have important differences from the economic point of view.

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Authors and Affiliations

  1. Department of Economics and Quantitative Methods, University of Pavia, Via S. Felice 5, 27100, Pavia, Italy

    Fabio Tramontana

  2. Department of Basic Sciences, Faculty of Computers and Informatics, Ismalia, Suez Canal University, Ismailia, 41522, Egypt

    Abd Elalim Abdo Elsadany

Authors
  1. Fabio Tramontana
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  2. Abd Elalim Abdo Elsadany
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Correspondence to Fabio Tramontana.

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Tramontana, F., Elsadany, A.E.A. Heterogeneous triopoly game with isoelastic demand function. Nonlinear Dyn 68, 187–193 (2012). https://doi.org/10.1007/s11071-011-0215-z

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  • DOI: https://doi.org/10.1007/s11071-011-0215-z

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