DYNAMIC ANALYSIS FOR COURNOT COMPETITION MODEL WITH EXPONENTIAL DEMAND FUNCTION AND RELATIVE PROFIT MAXIMIZATION

This paper introduces a nonlinear system of difference equations which describes a qualitative study of Cournot oligopoly games with two boundedly rational players. With nonlinear demand function of exponential form, the model is built by following the traditional role in which players have limited information. The model describes a competition between two firms whose main interest is to maximize their relative profits. Several local and global analysis about the equilibrium points of the model are analyzed.