Effect of information asymmetry in Cournot duopoly game with bounded rationality
arXiv:1809.10865 · doi:10.1016/j.amc.2019.06.049
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.
16 pages, 8 figures