An analysis of the complex dynamic behaviour of nonlinear oligopoly models with time delays

Abstract

We consider the fate of output in the Cournot oligopoly model when the equilibrium is locally unstable. We discuss types of nonlinearities which may be present to bound the motion and introduce time lags in production and information which serve as bifurcation parameters. We apply the Hopf bifurcation theorem to determine conditions under which limit cycle motion is born, and use computer simulations to investigate the nature of the attractors generated by such models.