A Heterogeneous Duopoly Game under an Isoelastic Demand and Diseconomies of Scale

In this paper, we investigate a duopolistic market with heterogeneous firms under the assumptions of an isoelastic demand and quadratic costs. We obtain sufficient necessary condition local stability Cournot–Nash equilibrium analytically compare it that analogue model linear rather than By approaches symbolic computation, prove diseconomies scale have effect stabilizing game provided cost parameters are large enough. Moreover, by means numerical simulations, find our loses its only through period-doubling bifurcation, which is different from having two possible routes to chaotic dynamics.