WSEAS Transactions on Systems and Control
Print ISSN: 1991-8763, E-ISSN: 2224-2856
Volume 9, 2014
Research on Price Game Process and Wavelet Chaos Control of Three Oligarchs’ Insurance Market in China
Authors: ,
Abstract: Based on the actual data, this paper shows Chinese insurance market monopoly status through the Market Concentration Rate, and established the repeated price game model for three oligarchs with delayed decision according to Bertrand model. Discussed the two main goals of insurance companies faced in the game process: the expansion of profit and market share. Through the application of nonlinear dynamics theory, this paper makes the analysis and dynamic simulation of the game model, studies the existence and stability of equilibrium point of the system, reveals the dynamic evolution process of market under the different price adjustment speed and the different concern degree of profit. Then have numerical simulation to the system, and gives the complex dynamic characteristics, such as Lyapunov exponent, strange attractor, sensitivity to initial value. Due to wavelet function has good time-frequency localization ability; this paper introduces different wavelet functions to have the chaos control to the system, results shows that wavelet function has a good convergence effect to the chaotic state of the system. The research results of this paper have very good guidance on macro adjustment and control of the insurance market.
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Pages: 454-463
WSEAS Transactions on Systems and Control, ISSN / E-ISSN: 1991-8763 / 2224-2856, Volume 9, 2014, Art. #47