Production Competition and Complexity Analysis between Bounded Rationality Creative Enterprises

摘要

Suppose there are two oligopolistic creative enterprises with bounded rationality in the market. In order to maximise profits, they may adopt the strategy of production competition. In this paper, mathematical modeling and numerical simulation are carried out. Specifically, a multi-period duopoly Stackelberg game model with bounded rationality is formulated. Its dynamical evolution and economic equilibrium are investigated. The local stability analysis of four equilibrium points is also carried out. The study shows that the equilibrium will become unstable or chaotic as the output adjustment speed parameter value increases. The greater the adjustment speed is, the higher the degree of complexity of the economic system becomes. Finally, numerical simulations are used to demonstrate the stability region, bifurcation diagrams, and chaos.