Welfare implications of free trade agreements under Bertrand and Cournot competition with product differentiation

Kawabata, Yasushi; Takarada, Yasuhiro

doi:10.1016/j.inteco.2014.04.003

Cited by 5 publications

(8 citation statements)

References 18 publications

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“…The first bifurcation point of the system is big compared to that before controlling, the value of which is 5, and it is bigger than value (1.95) of first bifurcation point in system (14) in Figure 9 depicting the bifurcation diagram of with respect to 1 when 2 = 1.2. Figure 10 shows the bifurcation diagram of with respect to 2 when 1 = 1.2.…”

Section: Chaos Controlmentioning

confidence: 93%

“…In consideration of the complexity of system (14), the numerical simulation method will be employed in this paper as this method has been widely used in most of the literatures. The stable region, bifurcation, and chaos will be investigated; meanwhile, the largest Lyapunov exponent, entropy, chaotic attractor, and the time domain response will be discussed to verify the dynamic characteristics of this system.…”

Section: Dynamic Characteristics Of the Systemmentioning

confidence: 99%

“…With the parameter adjustment control, the system will be Figure 11 depicts the stable region after having been controlled by the control parameter. Compared to the stable region of system (14), the stable region of system (20) increases obviously, which means a relative large price adjustment speed will not make the system run into chaos. This is helpful for managers to adjust the retail price with a more range.…”

Section: Chaos Controlmentioning

confidence: 99%

“…When takes the value of zero, system (20) will be the same as system (14), and then the system is chaotic. With the increase of , the system changes from the chaotic region to the bifurcation region and finally falls into the stable region, which means the chaos behavior has been controlled completely.…”

Section: Chaos Controlmentioning

confidence: 99%

“…Kawabata and Takarada [14] probed into the effect of free trade agreements on the welfare in Bertrand and Cournot competition model under differentiated products. Brianzoni et al [15] studied the mathematical properties and dynamics of a Bertrand duopoly with horizontal differentiated products and nonlinear costs, and the new evidence has been offered.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Complexity Dynamic Character Analysis of Retailers Based on the Share of Stochastic Demand and Service

Ma¹,

Di²,

Ren³

2017

Complexity

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Apart from the price fluctuation, the retailers' service level becomes another key factor that affects the market demand. This paper depicts a modified price and demand game model based on the stochastic demand and the retailer's service level which influences the market demand decided by customers' preference, while the market demand is stochastic in this model. We explore how the price adjustment speed affects the stability of the supply chain system with respect to service level and stochastic demand. The dynamic behavior of the system is researched by simulation and the stability domain and the bifurcation phenomenon are shown clearly. The largest Lyapunov exponent and the chaotic attractor are also given to confirm the chaotic characteristic of the system. The simulation results indicate that relatively small price adjustment speed may maintain the system at stable state. With the price adjustment speed gradually increasing, the price system gets unstable and finally becomes chaotic. This chaotic phenomenon will perturb the product market and this phenomenon should be controlled to keep the system stay in the stable region. So the chaos control is done and the chaos can be controlled completely. The conclusion makes significant contribution to the system referring to the price fluctuation based on the service level and stochastic demand.

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Section: Chaos Controlmentioning

confidence: 93%

Section: Dynamic Characteristics Of the Systemmentioning

confidence: 99%

Section: Chaos Controlmentioning

confidence: 99%

Section: Chaos Controlmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Complexity Dynamic Character Analysis of Retailers Based on the Share of Stochastic Demand and Service

Ma¹,

Di²,

Ren³

2017

Complexity

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Endogenous product substitutability strategy under duopoly

2019

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This article develops endogenous product substitutability theory. With game theory approach, the effects of endogenous product substitutability are characterized. First, equilibrium under endogenous product substitutability is achieved. Second, product substitutability strategy promotes price, total outputs, and social welfare. Outputs under high‐efficiency firm's product substitutability are compared with those under low‐efficiency firm's product substitutability. Third, compared with the other cases, joint product substitutability improves price difference. Finally, the outputs of all firms under endogenous product substitutability are shown to be lower than the social optimality level. The policy implication is to encourage firms investing product substitutability.

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Greening Trade Agreements Through Harmonization of Environmental Regulations

Kawabata

Takarada

2023

Environ Resource Econ

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Welfare implications of free trade agreements under Bertrand and Cournot competition with product differentiation

Cited by 5 publications

References 18 publications

Complexity Dynamic Character Analysis of Retailers Based on the Share of Stochastic Demand and Service

Complexity Dynamic Character Analysis of Retailers Based on the Share of Stochastic Demand and Service

Endogenous product substitutability strategy under duopoly

Greening Trade Agreements Through Harmonization of Environmental Regulations

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