Authors: Georges Sarafopoulos
In this paper the equilibrium state of a bounded rational monopolist model is studied. It is assumed that the entire demand and cost functions are nonlinear. The equilibrium of the model is equal to the level of price that maximizes profits, as can be seen in the classical microeconomic theory. However, complex dynamics can arise and the stability of equilibrium state is discussed. 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 03:27:40
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