We investigate the dynamics of a competitive market and examine the dependence of our results on the degree of product differentiation. The duopoly, employed to illustrate by way of example our findings, consists of a firm following bounded rational expectations and a firm with so-called 'naive' expectations. We present our conclusions by inspecting the graphs of the profits of each firm, as traced out by the evolution of the corresponding dynamical systems. Finally, we pose some suitable models to study the dynamics of a competitive oligopoly with heterogeneous products.
|Title of host publication||Nonlinear Economic Dynamics|
|Publisher||Nova Science Publishers, Inc.|
|Number of pages||10|
|Publication status||Published - Feb 1 2011|
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)