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0.15
x 2
T 2 ( F )
F
x
T ( F )
a 2 = 0.2466
x 1
0.3
0.6
(a)
0.15
x 2
T 2 ( F )
T 6 ( F )
T 8 ( F )
T 4 ( F )
F
T 3 ( F )
T 7 ( F )
T 5 ( F )
T ( F )
x
a 2 = 0.26
0.07
0.3
x 1
0.6
(b)
Fig. 3.8 Example 3.4; discrete time oligopoly with isoelastic demand and linear cost functions.
Global dynamics in the semi-symmetric case. ( a )Ata 2 ' 0:2466 a border collision bifurcation
occurs when one of the two periodic points intersects the “folding line” F and a 4-piece chaotic
attractor is born. ( b )Asa 2 increases to a 2 D 0:26 the chaotic attractor intersects a “folding line”
the two periodic points are close to the saddle point
x, hence they belong to region
.1/ . As the parameter a 2 is further increased, the two periodic points move away
from the fixed point, and one of them intersects the boundary of region
D
.1/ , denoted
as “folding line” F in Fig. 3.8. This first border crossing may produce many kinds
of effects. However, in this case there are no evident effects: if one of the peri-
odic points moves into region
D
.1/ ), the
2-cycle remains attracting. This is an example of a border collision without any
.2/
D
(while the other remains in region
D
 
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