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Nonlinear dynamics in a heterogeneous quantum Cournot duopoly game with isoelastic demand

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Abstract

We build a dynamic quantum Cournot duopoly game with isoelastic demand and heterogeneous players by applying Li et al.’s quantization scheme. We investigate the effects of quantum entanglement on equilibrium profits, equilibrium stability and nonlinear dynamics. We find the equilibrium profits increase as the entanglement level increases, under a specific condition. An increase in the entanglement level will decrease the stability region, and hasten the occurrence of nonlinear dynamics via flip bifurcation or Neimark–Sacker bifurcation.

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Acknowledgements

National Natural Science Foundation of China (91646123) and the Planning Project of Philosophy and Social Science Research in Anhui Province (AHSKQ2017D03) supported this work.

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Authors and Affiliations

  1. School of Finance, Anhui University of Finance and Economics, Bengbu, 233030, China

    Lian Shi

  2. School of Management and Engineering, Nanjing University, Nanjing, 210093, China

    Feng Xu

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  1. Lian Shi
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  2. Feng Xu
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Correspondence to Feng Xu.

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Shi, L., Xu, F. Nonlinear dynamics in a heterogeneous quantum Cournot duopoly game with isoelastic demand. Quantum Inf Process 20, 310 (2021). https://doi.org/10.1007/s11128-021-03241-7

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