Delay Cournot Duopoly Game with Gradient Adjustment: Berezowski Transition from a Discrete Model to a Continuous Model

Abstract

This paper investigates the asymptotical behavior of the equilibrium of linear classical duopolies by reconsidering the two-delay model with two different positive delays. In a two-dimensional analysis, the stability switching curves were first analytically determined. Numerical studies verified and illustrated the theoretical results. In the sensitivity analysis it was demonstrated that the inertia coefficient has a twofold effect: enlarges the stability region as well as simplifies the complicated dynamics with period-halving cascade. In contrary, the adjustment speed contracts the stability region and complicates simple dynamics with period-doubling bifurcation. In addition, for various values of τ1 and τ2, a wide variety of dynamics appears ranging from simple cycle via a Hopf bifurcation to chaotic oscillations.