Science Research Management ›› 2014, Vol. 35 ›› Issue (12): 36-45.

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Analysis of cluster spillovers' impact on thequantity equilibrium between rational duopoly

Zhao Hua, Long Jianjun   

  1. School of Economics and Business Administration, Chongqing University, Chongqing 400030, China
  • Received:2014-06-01 Revised:2014-09-22 Online:2014-12-25 Published:2014-12-23

Abstract: Based on the bounded rationality of cluster enterprises, this paper constructs a duopoly production game model in enterprise cluster with cluster spillovers features, by adopting two different adjustment mechanisms, GD and LMA, this paper also analyzes and discusses the effect of cluster spillovers on equilibrium quantity under the discrete dynamical system, and finally carry through the numerical simulation. This research shows that: the evolution track of product quantity depends on the values of discrete system parameters, such as output adjustment speed, the spillover effect; furthermore, when the speed of output adjustment is small, the Nash equilibrium output exists for any overflow, on the other hand, when the speed of output adjustment is relatively bigger, moderate spillover is beneficial to the improvement of the cluster duopolies' profits, while, overflow transition can lead to the happening of the chaotic market.

Key words: Cournot competition, spillover effect, enterprise cluster, chaos, quantity adjustment mechanism

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