On the long-time behavior of a continuous duopoly model with constant conjectural variation

Abstract

The paper concerns a continuous model governed by a ODE system originated by a discrete duopoly model with bounded rationality, based on constant conjectural variation. The ultimately boundedness of the solutions (existence of an absorbing set in the phase space) is shown and conditions guaranteeing the nonlinear, global, asymptotic stability of solutions have been found using the Liapunov direct method.