Effect of information asymmetry in Cournot duopoly game with bounded rationality
Abstract We investigate the effect of information asymmetry on a dynamic Cournot duopoly game with bounded rationality. Concretely, we study how one player's possession of information about the other player's behavior in a duopoly affects the stability of the Cournot Nash equilibrium. We theoretically and numerically show that the information stabilizes the Cournot Nash equilibrium and suppresses chaotic behavior in the duopoly.
Appl. Math. Comput.