Authors: Georges Sarafopoulos
In this paper we point to the difficulty of applying concepts of microeconomic theory (competition between products and firms) at the political level (competition between regions). To emphasize this difficulty we present a model of competition between two local governments in order to show complexity and non-predictability. We consider the interaction between local governments during the implementation of a reform on regional development through a discrete – time duopoly game where the players have homogeneous expectations. The existence and stability of equilibria of this system are studied. We show that a parameter of the system may change the stability of equilibrium and cause a structure to behave chaotically. For the low values of this parameter the game has a stable Nash equilibrium. Increasing these values, the Nash equilibrium becomes unstable, through period-doubling bifurcation. The complex dynamics, bifurcations and chaos are displayed by computing numerically Lyapunov numbers and sensitive dependence on initial conditions.
Comments: 11 Pages. Published in The Hellenic Open Business Administration Journal; https://hobajournal.wordpress.com/
[v1] 2018-07-01 04:13:28
Unique-IP document downloads: 17 times
Vixra.org is a pre-print repository rather than a journal. Articles hosted may not yet have been verified by peer-review and should be treated as preliminary. In particular, anything that appears to include financial or legal advice or proposed medical treatments should be treated with due caution. Vixra.org will not be responsible for any consequences of actions that result from any form of use of any documents on this website.
Add your own feedback and questions here:
You are equally welcome to be positive or negative about any paper but please be polite. If you are being critical you must mention at least one specific error, otherwise your comment will be deleted as unhelpful.