A Cournot duopoly, with a bounded inverse demand function and different constant marginal production costs, can be modeled as a discrete-time dynamical system, which exhibits complex bifurcating and chaotic behaviors. Based on some essential features of the model, we show how bifurcation and...

We study a simple model of market share dynamics with boundedly rational consumers and firms interacting with each other. As the number of consumers is large, we employ a statistical description to represent firms’ distribution of consumer share, which is characterized by a single parameter...

A simple Ising spin model which can describe the mechanism of advertising in a duopoly market is proposed. In contrast to other agent-based models, the influence does not flow inward from the surrounding neighbors to the center site, but spreads outward from the center to the neighbors. The...

Neoclassical economics has two theories of competition between profit-maximizing firms—Marshallian and Cournot–Nash—that start from different premises about the degree of strategic interaction between firms, yet reach the same result, that market price falls as the number of firms in an...

A new approach for the description of phenomena of social aggregation is suggested. On the basis of psychological concepts (as for instance social norms and cultural coordinates), we deduce a general mechanism for social aggregation in which different clusters of individuals can merge according...

We study the spatial prisoner’s dilemma game where the players are located on the nodes of a random scale-free network. The prisoner’s dilemma game is a powerful tool and has been used for the study of mutual trust and cooperation among individuals in structured populations. We vary the...

We introduce a two-player model of reinforcement learning with memory. Past actions of an iterated game are stored in a memory and used to determine player’s next action. To examine the behaviour of the model some approximate methods are used and confronted against numerical simulations and...

We present an extensive, systematic study of the Prisoner’s Dilemma and Snowdrift games on a square lattice under a synchronous, noiseless imitation dynamics. We show that for both the occupancy of the network and the (random) mobility of the agents there are intermediate values that may...

Traditionally the emphasis in neural network research has been on improving their performance as a means of pattern recognition. Here we take an alternative approach and explore the remarkable similarity between the under-performance of neural networks trained to behave optimally in economic...