Describing the Dynamics and Complexity of Matsumoto-Nonaka's Duopoly Model

Figure 22

In this case 𝛼=1.3, but the initial conditions are 𝑥₀=1/𝛽 and 𝑦₀=0.001. The code is the same as in Figure 21. With these initial conditions there are points in which the profit of firm 1 (close to 𝛽=1.56) is greater than the profit reached in the Cournot point.

(a)

(b)