ABSTRACT

In 1838, Cournot proposed the classical oligopoly game model. In 1883, Bertrand reworked Cournot’s duopoly game model using prices rather than quantities as the strategic variables. In 1991, Puu [7] introduced chaos and bifurcation theory into duopoly game models. Over the past decade, many researchers, such as Tramontana et al. [8], Ahmed and Agiza [9] and Ahmed et al. [10], Agiza and Elsadany [11], Bischi et al. [12], Kopel [13] and Den Haan [14], have paid a great attention to the dynamics of games. As mentioned above, if one draws an analogy between species in biology and products in economics, it is easy to fi nd that some of relationships among different products are substitutable or parasitic, and others are supportive or adnascent. But all the models cited above are based on the assumption that all players (fi rms) produce goods which are perfect substitutes in an oligopoly market. In this paper, we assume that the relationship of two players’ products is not substitutable but adnascent.