Controlling chaos in a Cournot duopoly economic model

A Cournot duopoly, with 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, it is shown that how bifurcation and chaos can be controlled via the well-known delayed feedback control (DFC) method. Next, to overcome the DFC's inherent limitation, an adaptive parameter-tuning algorithm for control is proposed and evaluated. In addition, some possible economic implications of the chaos control strategies are also discussed in the paper.