Topological chaos in oligopoly competition

Li, Xiaoliang and Zhang, Ally Quan (2025) Topological chaos in oligopoly competition. Economics Letters. ISSN 0165-1765 (In Press)

Text (Topological_chaos_in_oligopoly_competition)
Topological_chaos_in_oligopoly_competition.pdf - Accepted Version
Available under License Creative Commons Attribution.
Download (247kB)

Abstract

This letter demonstrates that oligopoly competition can exhibit topological chaos by applying Mitra's sufficient condition. To overcome the computational challenges arising from the lack of a simple closed-form expression for the modal point, we develop a resultant-based method. Our results show that, for a sufficiently large number of firms, there must exist parameter values that guarantee topological chaos.