A robust route to randomness in a simple Cournot duopoly game where ambiguity aversion meets constant expectations

Radi, D; Gardini, L; Goldbaum, D

A robust route to randomness in a simple Cournot duopoly game where ambiguity aversion meets constant expectations

Radi, D Gardini, L Goldbaum, D

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Publisher:: Springer
Publication Type:: Journal Article
Citation:: Annals of Operations Research, 2024, 337, (3), pp. 769-807
Issue Date:: 2024-01-01

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Field	Value	Language
dc.contributor.author	Radi, D
dc.contributor.author	Gardini, L
dc.contributor.author	Goldbaum, D https://orcid.org/0000-0002-4228-1408
dc.date.accessioned	2025-01-28T02:35:06Z
dc.date.available	2025-01-28T02:35:06Z
dc.date.issued	2024-01-01
dc.identifier.citation	Annals of Operations Research, 2024, 337, (3), pp. 769-807
dc.identifier.issn	0254-5330
dc.identifier.issn	1572-9338
dc.identifier.uri	http://hdl.handle.net/10453/184266
dc.description.abstract	In this paper we investigate the dynamics of a duopoly game with ambiguity aversion regarding uncertainty in demand and constant expectations concerning competitor production. The focus is on an asymmetric Cournot game where players engage in robust optimization and have different beliefs about the possible realizations of the random parameters of the price function. The players’ ambiguity aversion introduces multiple equilibria and instability that otherwise would not be present. The investigation of the global dynamics of the game reveals the emergence, through border-collision bifurcations, of periodic and chaotic dynamics.
dc.language	English
dc.publisher	Springer
dc.relation.ispartof	Annals of Operations Research
dc.relation.isbasedon	10.1007/s10479-023-05686-8
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	01 Mathematical Sciences, 08 Information and Computing Sciences, 15 Commerce, Management, Tourism and Services
dc.subject.classification	Operations Research
dc.subject.classification	35 Commerce, management, tourism and services
dc.subject.classification	46 Information and computing sciences
dc.subject.classification	49 Mathematical sciences
dc.title	A robust route to randomness in a simple Cournot duopoly game where ambiguity aversion meets constant expectations
dc.type	Journal Article
utslib.citation.volume	337
utslib.for	01 Mathematical Sciences
utslib.for	08 Information and Computing Sciences
utslib.for	15 Commerce, Management, Tourism and Services
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Economics Discipline
pubs.organisational-group	University of Technology Sydney/UTS Groups
pubs.organisational-group	University of Technology Sydney/UTS Groups/Centre for Behavioural Science and Policy Design (CBSPD)
pubs.organisational-group	University of Technology Sydney/UTS Groups/Behavioural-Lab (BL)
utslib.copyright.status	open_access	*
pubs.consider-herdc	false
dc.rights.license	This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by/4.0/
dc.date.updated	2025-01-28T02:35:04Z
pubs.issue	3
pubs.publication-status	Published
pubs.volume	337
utslib.citation.issue	3

Abstract:

In this paper we investigate the dynamics of a duopoly game with ambiguity aversion regarding uncertainty in demand and constant expectations concerning competitor production. The focus is on an asymmetric Cournot game where players engage in robust optimization and have different beliefs about the possible realizations of the random parameters of the price function. The players’ ambiguity aversion introduces multiple equilibria and instability that otherwise would not be present. The investigation of the global dynamics of the game reveals the emergence, through border-collision bifurcations, of periodic and chaotic dynamics.

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http://hdl.handle.net/10453/184266