Production Competition and Complexity Analysis between Bounded Rationality Creative Enterprises

doi:10.23940/ijpe.20.04.p11.599608

Int J Performability Eng ›› 2020, Vol. 16 ›› Issue (4): 599-608.doi: 10.23940/ijpe.20.04.p11.599608

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Production Competition and Complexity Analysis between Bounded Rationality Creative Enterprises

Lingzhu Kong^a,b, Yue Zhang^b, Junhao Hao^b, and Weisheng Yu^b,c,*

^aCreative Centre for ArtSciArch, Jilin Jianzhu University, Changchun, 130118, China
^bInstitution of Economics and Management, Jilin Jianzhu University, Changchun, 130118, China
^cCenter for Quantitative Economics, Jilin University, Changchun, 130021, China

Submitted on ; Revised on ; Accepted on
Contact: Yu Weisheng
About author:Dr Lingzhu Kong is an associate professor at Creative Centre for ArtSciArch, School of Economics and Management, Jilin Construction University. His research interests include game theory and industry competition theory.
Yue Zhang is a graduate student in the School of Economics and Management, Jilin Construction University. His research interests include game theory and industry competition theory.
Junhao Hao is a graduate student in the School of Economics and Management, Jilin Construction University. His research interests include game theory and industry competition theory.
Professor Weisheng Yu is a researcher at Jilin University's Center for Quantitative Economics Research and a part-time professor at the School of Economics and Management, Jilin Construction University. His research interests include information economics and mathematical economics.
Supported by:
This work is supported by the Scientific Research Planning Project of Jilin Provincial Department of Education (No. JJKH20200264KJ), Changchun Philosophy and Social Science Planning Project (No. CSKT2019ZX-001), and Dr. Scientific Research Fund of Jilin Jianzhu University (No. 861072).

Abstract

Abstract:

Suppose there are two oligopolistic creative enterprises with bounded rationality in the market. In order to maximise profits, they may adopt the strategy of production competition. In this paper, mathematical modeling and numerical simulation are carried out. Specifically, a multi-period duopoly Stackelberg game model with bounded rationality is formulated. Its dynamical evolution and economic equilibrium are investigated. The local stability analysis of four equilibrium points is also carried out. The study shows that the equilibrium will become unstable or chaotic as the output adjustment speed parameter value increases. The greater the adjustment speed is, the higher the degree of complexity of the economic system becomes. Finally, numerical simulations are used to demonstrate the stability region, bifurcation diagrams, and chaos.

Key words: Stackelberg game, bounded rationality, bifurcation, chaos, complexity

Lingzhu Kong, Yue Zhang, Junhao Hao, and Weisheng Yu. Production Competition and Complexity Analysis between Bounded Rationality Creative Enterprises [J]. Int J Performability Eng, 2020, 16(4): 599-608.

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Production Competition and Complexity Analysis between Bounded Rationality Creative Enterprises

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