Research on Bifurcation and Chaos in a Dynamic Mixed Game System with Oligopolies Under Carbon Emission Constraint

Abstract

This paper establishes an oligopolistic game model under the carbon emission reduction constraint and investigates its complex characteristics like bifurcation and chaos. Two oligopolistic manufacturers comprise three mixed game models, aiming to explore the variation in the status of operating system as per the upgrading of benchmark reward-penalty mechanism. Firstly, we set up these basic models that are respectively distinguished with carbon emission quantity and study these models using different game methods. Then, we concentrate on one typical game model to further study the dynamic complexity of variations in the system status, through 2D bifurcation diagrams and 4D parameter adjustment features based on the bounded rationality scheme for price, and the adaptive scheme for carbon emission. The results show that the carbon emission constraint has significant influence on the status variation of two-oligopolistic game operating systems no matter whether it is stable or chaotic. Besides, the new carbon emission regulation meets government supervision target and achieves the goal of being environment friendly by motivating the system to operate with lower carbon emission.