WSEAS Transactions on Systems and Control
Print ISSN: 1991-8763, E-ISSN: 2224-2856
Volume 10, 2015
Complexity Analysis and Chaos Control of a R&D Game with Spillovers and Endogenous Demand in a Triopoly spillovers and endogenous demand in a triopoly
Authors: ,
Abstract: A R&D input game model with spillovers and endogenous demand in a triopoly market is considered in which all the players are bounded rational. Assume that the two players make up a cooperative team, they share the technology achievements completely and have same cost. Technology spillover exists between the cooperative team and the third player. R&D investment helps to expand market demand. On the basis of analyzing the stability of the only Nash equilibrium point, the local stable regions are obtained. Three-dimensional stable regions are investigated and the results show that the spillover rate of R&D has an obvious impact on the stable regions. Impact of technology spillover rate and endogenous demand on the profits is studied, and it is interesting that profits of different players could not lose stability synchronously. The complex dynamics, such as bifurcation scenarios, route to chaos and attractors are displayed by 2D bifurcation diagrams, the results show that if the adjustment speed of R&D input is high, the economic system tends to lose stability. The chaos is eliminated by using the feedback control method. Basins of attraction are investigated and we find the domain of attraction become smaller with increase of spillover rate and R&D input modification speed.
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Pages: 307-319
WSEAS Transactions on Systems and Control, ISSN / E-ISSN: 1991-8763 / 2224-2856, Volume 10, 2015, Art. #33