English

Effect of information asymmetry in Cournot duopoly game with bounded rationality

Computer Science and Game Theory 2019-07-09 v2

Abstract

We investigate the effect of information asymmetry on a dynamic Cournot duopoly game with bounded rationality. Concretely, we study how one player's possession of information about the other player's behavior in a duopoly affects the stability of the Cournot-Nash equilibrium. We theoretically and numerically show that the information stabilizes the Cournot-Nash equilibrium and suppresses chaotic behavior in the duopoly.

Keywords

Cite

@article{arxiv.1809.10865,
  title  = {Effect of information asymmetry in Cournot duopoly game with bounded rationality},
  author = {Masahiko Ueda},
  journal= {arXiv preprint arXiv:1809.10865},
  year   = {2019}
}

Comments

16 pages, 8 figures