Discrete Dynamics in Nature and Society
Volume 2012 (2012), Article ID 280824, 16 pages
Research Article

Analysis of Triopoly Game with Isoelastic Demand Function and Heterogeneous Players

1School of Finance & Economics, Jiangsu University, Zhenjianig 212013, China
2Institute of System Engineering, Jiangsu University, Zhenjianig 212013, China

Received 24 August 2011; Accepted 28 October 2011

Academic Editor: Baodong Zheng

Copyright © 2012 Hong-Xing Yao et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


We analyze a triopoly game model with fully heterogeneous players when the demand function is isoelastic. The three players were considered to be bounded rational, adaptive, and naïve. Existing equilibrium points and their locally asymptotic stability conditions are studied. Complexity of the dynamical system is examined by means of numerical simulations, such as period cycles, bifurcation diagrams, strange attractors and sensitive, dependence on initial conditions. This paper extends the result of Tramontana (2010) who considered a heterogeneous duopoly with isoelastic demand function. Comparisons with respect to the heterogeneous triopoly model of Elabbasy et al. (2009) assuming linear demand function are performed.