Basins of Attraction in a Cournot Duopoly Map: Analysis, Linear Algebra, and
Economics
Speaker: Prof. Douglas R. Anderson , United International College
Time: 9:00 am, Wed, June 23, 2010
Venue: E304
Abstract:
We will introduce the economic concept of a Cournot Duopoly, first introduced
by French economist Cournot in 1838. Then we will analyze a nonlinear discrete Cournot
duopoly introduced by Austrian economist Koppel in 1996. In particular, we will use
analysis methods from difference equations and linear algebra to understand the behavior
of the system in relation to certain fixed points of the system. Using the professional
software package Mathematica 7.0, we will illustrate graphically the effects that
various eigenvalues of the linearization have on the system.
Students asked questions.