Work

Topological chaos in oligopoly competition

Year: 2025

Type: article

Abstract: This letter demonstrates that oligopoly competition can exhibit topological chaos by applying Mitra’s sufficient condition. To overcome the computational challenges arising from the lack of a simple closed-form expression for the modal point, we develop a resultant-based method. Our results show that, for a sufficiently large number of firms, there must exist parameter values that guarantee topological chaos. • We show topological chaos can arise in dynamic oligopoly competition. • A symbolic computation method is proposed to verify Mitra’s sufficient condition. • Our method bypasses computational challenges when modal points lack simple expressions. • Parameter values exist where chaos emerges if the firm number is sufficiently large.

Source: Economics Letters

DOI: 10.1016/j.econlet.2025.112330

Authors: Xiaoliang Li, Ally Quan Zhang

Institutions: Shanghai University of Finance and Economics, Guangzhou College of Technology and Business, Lancaster University

Language: English

Topic: Chaos control and synchronization

Subfield: Statistical and Nonlinear Physics

Field: Physics and Astronomy

Domain: Physical Sciences

Open Access status: hybrid

Estimated APC paid: $3,030

Funders: Shanghai University of Finance and Economics, Guangzhou Institute of Industry and Commerce