We develop a nonlinear duopoly model in which the heuristic expectation formation and learning behavior of two boundedly rational firms may engender complex dynamics. Most importantly, we assume that the firms employ different forecasting models to predict the behavior of their opponent....

In this paper, we study the global dynamics of a complementarity game with effort cost externalities. Following Matsuyama (2002), we assume that identical players are simultanously engaged in two identical games, where the players' efforts chosen in each of the games exhibit a strategic...

We move from a triopoly game with heterogeneous players (E.M.Elabassy et al., 2009. Analysis of nonlinear triopoly game with heterogeneous players. Computers and Mathematics with Applications 57, 488-499). We remove the nonlinearity from the cost function and introduce it in the demand function....