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

Figure 21

For 𝛼=1.3 and 𝛽∈(1,2], we show the average profits of firms 1 (blue) and 2 (red) with initial conditions 𝑥₀=(1/𝛽)(1−1−1/𝛼), 𝑦₀=0.999. We also show the profit at the Cournot points for firms 1 (dashed and blue) and 2 (dashed and red). The first figure (a) shows in the 𝑋 axis the parameter 𝛽∈[0,2], and the second one (b) with 𝛽∈[1,2] is a zoom of the first one.

(a)

(b)