We investigate a duopoly market describing the competition between two firms that produce goods of the same kind, under the assumption that their cost functions are proportional to the amounts produced. When the proportionality factor is constant, it has been found that the model always leads to a stable equilibrium point. In this paper, we introduce cost functions that include periodic driving, which models fluctuations of prices that determine the production costs of a firm. In contrast to the undriven case, we find that the equilibrium point destabilizes and all solutions rapidly converge to a stable quasiperiodic attractor.
|Title of host publication||LET’S FACE CHAOS THROUGH NONLINEAR DYNAMICS|
|Editors||Marko Robnik , Valery Romanovski|
|Publisher||AIP Conference Proceedings|
|Publication status||Published - Nov 2008|