%0 Journal Article
%T Dynamic Monopoly with Demand Delay
%A Akio Matsumoto
%A Ferenc Szidarovszky
%J Theoretical Economics Letters
%P 146-154
%@ 2162-2086
%D 2014
%I Scientific Research Publishing
%R 10.4236/tel.2014.42022
%X <p style=\"text-align:justify;\">
	This study analyses the
dynamics of nonlinear monopoly. To this end, the conventional assumptions in
the text-book monopoly are modified; first, the complete information on the
market is replaced with the partial information; second, the instantaneous
information is substituted by the delay information. As a result, since such a
monopoly is unable to jump, with one shot, to the optimal point for which the
profit is maximized, the monopoly has to search for it. In a continuoustime
framework, the delay destabilizes the otherwise stable monopoly model and
generates cyclic oscillations via a Hopf bifurcation. In a discrete-time
framework, the steady state bifurcates to a bounded oscillation via a
Neimark-Sacker bifurcation. Although this has been only an introduction of
delay into the traditional monopoly model, it is clear that the delay can be a
source of essentially different behavior from those of the nondelay model.
</p>
%K Monopolist Competition
%K Demand Fluctuations
%K Bounded Rationality
%K Fixed Time Delay
%K Continuous and Discrete Dynamics
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=43729