Dynamic Stackelberg duopoly with sticky prices and a myopic follower

Kańska, Katarzyna; Wiszniewska-Matyszkiel, Agnieszka

doi:10.1007/s12351-021-00665-y

Cited by 4 publications

(1 citation statement)

References 53 publications

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“…This game consists of two players, each with their points [ 31 , 32 ]. This means that the competition is not about achieving a common goal, and the players compete with each other to improve their situation and increase their profits [ 33 , 34 ].…”

Section: Introductionmentioning

confidence: 99%

The dynamics of a duopoly Stackelberg game with marginal costs among heterogeneous players

et al. 2023

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One of the famous economic models in game theory is the duopoly Stackelberg model, in which a leader and a follower firm manufacture a single product in the market. Their goal is to obtain the maximum profit while competing with each other. The desired dynamics for a firm in a market is the convergence to its Nash equilibrium, but the dynamics of real-world markets are not always steady and can result in unpredictable market changes that exhibit chaotic behaviors. On the other hand, to approach reality more, the two firms in the market can be considered heterogeneous. The leader firm is bounded rationale, and the follower firm is adaptable. Modifying the cost function that affects the firms’ profit by adding the marginal cost term is another step toward reality. We propose a Stackelberg model with heterogeneous players and marginal costs, which exhibits chaotic behavior. This model’s equilibrium points, including the Nash equilibrium, are calculated by the backward induction method, and their stability analyses are obtained. The influence of changing each model parameter on the consequent dynamics is investigated through one-dimensional and two-dimensional bifurcation diagrams, Lyapunov exponents spectra, and Kaplan-Yorke dimension. Eventually, using a combination of state feedback and parameter adjustment methods, the chaotic solutions of the model are successfully tamed, and the model converges to its Nash equilibrium.

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Section: Introductionmentioning

confidence: 99%

The dynamics of a duopoly Stackelberg game with marginal costs among heterogeneous players

et al. 2023

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A differential game model for marine ranching development decisions between government and marine ranching enterprises considering myopic behavior

Leng,

2024

Mar Dev

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Government and marine ranching enterprises play decisive roles in promoting the sustainable development of marine ranching. The decisions made by these entities, whether short-sighted or far-sighted, can significantly impact the industry. This study proposes a differential game model to systematically examine the dynamic decision-making processes of both entities in promoting the development of marine ranching, considering their distinct behavioral strategies. This study helped in determining the optimal strategy for subsidy, the government’s promotional decisions, and the best development strategy for the enterprise. This study also uses Yantai marine ranching in Shandong Province as a case study. The findings suggest that government subsidy measures serve as an effective intervention to incentivize enterprises and boost market demand, regardless of short-sighted decisions by enterprises. However, short-sighted behavior by both the government and enterprises could negatively affect the goodwill and market demand for marine ranching products, thereby impeding the sustainable development of marine ranching. Moreover, the government’s decisions on a subsidy strategy for enterprises are based on external conditions. The study findings can offer valuable guidance for developing marine ranching.

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Dynamic Cournot Game with Heterogeneous Costs

孙¹

2022

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Dynamic Stackelberg duopoly with sticky prices and a myopic follower

Cited by 4 publications

References 53 publications

The dynamics of a duopoly Stackelberg game with marginal costs among heterogeneous players

The dynamics of a duopoly Stackelberg game with marginal costs among heterogeneous players

A differential game model for marine ranching development decisions between government and marine ranching enterprises considering myopic behavior

Dynamic Cournot Game with Heterogeneous Costs

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