Analysis of a Game with Bounded Rationality in Oligopoly Market

Based on the players with bounded rationality,the game model is built to analyze a nonlinear duopoly game with heterogeneous players and different functions of cost.The existence and stability of the Nash equilibrium of this system are studied.The complex dynamics, bifurcations,strange attractor and chaos are displayed by simulating numerically and the largest Lyapunov exponents are computed.We show thatenterprise's expectations have an impact on the result of duopoly game. The conclusions provide enterprise with theories of output decision-making in chaotic market.