著者

Akio MATSUMOTO Yasuo NONAKA

出版者

JAPAN SECTION OF THE REGIONAL SCIENCE ASSOCIATION INTERNATIONAL

雑誌

地域学研究 (ISSN:02876256)

巻号頁・発行日

vol.35, no.1, pp.1-16, 2005 (Released:2007-06-01)

参考文献数

14

被引用文献数

2 1

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This study investigates an economic implication of chaotic fluctuations that are observed in a nonlinear economic dynamic model. To this end, it constructs a nonlinear discrete time Cournot duopoly model in which firms have U-shaped or inverted U-shaped reaction functions due to production externality and shows that chaotic output fluctuations can arise for strong nonlinearities. Two main results of this study are: (i) it is theoretically as well as numerically confirmed that one of the duopolists can benefit in the sense that the long-run average profit taken along a chaotic trajectory is higher than the profit taken at an equilibrium point while the other is disadvantaged if both duopolists are homogeneous; (ii) it is verified with numerical simulations that both duopolists can benefit from chaotic trajectories if they are heterogenous.