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Conditions for stable equilibrium in Cournot duopoly models with tax evasion and time delay
Raúl Villafuerte-Segura1, Eduardo Alvarado-Santos1, Benjamín A Itzá-Ortiz2
1Centro de Investigación en Tecnologías de Información y Sistemas, Universidad Autónoma del Estado de Hidalgo, Pachuca, Hidalgo 42184, Mexico.
Abstract:
We provide conditions for stable equilibrium in Cournot duopoly models with tax evasion and time delay. We prove that our conditions actually imply asymptotically stable equilibrium and delay independence. Conditions include the same marginal cost and equal probability for evading taxes. We give examples of cost and inverse demand functions satisfying the proposed conditions. Some economic interpretations of our results are also included.
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