Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
11023306 | Physica A: Statistical Mechanics and its Applications | 2019 | 27 Pages |
Abstract
In this paper, a duopoly remanufacturing game of competition on output based on boundedly rational expectation is formulated. It involves an original equipment manufacturer (OEM) who makes new products and a third-party independent remanufacture (IR) who uses returned cores to produce differentiated products. Both parties adopt nonlinear cost functions. The study shows that consumer's willingness-to-pay (WTP) has distinct effects on the OEM's performance and the stability of Nash equilibrium. We present results on existence, stability and local bifurcations of the equilibrium points. Numerical simulations demonstrate that the system with varying model parameters may be driven to chaos and the loss of stability may be caused by period doubling bifurcations. It is also shown that the state variables feedback and parameter variation method can be used to keep the system from instability and chaos.
Keywords
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Physical Sciences and Engineering
Mathematics
Mathematical Physics
Authors
Yu Peng, Qian Lu, Yue Xiao, Xue Wu,