A note on symmetry breaking in a non linear marketing model

Decisions in Economics and Finance - In this paper, we consider the nonlinear discrete-time dynamic model proposed by Bischi and Baiardi (Chaos Solitons Fractals 79:145-156, 2015a). The model...     

Heterogeneous players in a Cournot model with differentiated products

In this article, we analyse a duopolistic Cournotian game with firms producing differentiated goods, marginal costs are constant and demand functions are microfounded. We consider firms adopting different decisional mechanisms which are based on a reduced degree of rationality. In particular, we assume that a firm adopts the local monopolistic approximation approach, while the rival adjusts its output level according to the gradient rule. We provide conditions for the stability of the Nash equilibrium and investigate some bifurcation scenarios as parameters vary. The main finding of the article is that both a high level and a low level in goods differentiation may have a destabilising role in the system.