A fractional-order difference Cournot duopoly game with long memory

Abstract

We reconsider the Cournot duopoly problem in light of the theory for long memory. We introduce the Caputo fractional-order difference calculus to classical duopoly theory to propose a fractional-order discrete Cournot duopoly game model, which allows participants to make decisions while making full use of their historical information. Then we discuss Nash equilibria and local stability by using linear approximation.Finally, we detect the chaos of the model by employing a 0-1 test algorithm.