Duopoly game model and its stability with heterogeneous players

The problem of duopoly output game was modeled with an iso-elastic demand and two different players. One was assumed to be naive player and the other was presumed to be bounded rational player. Also, this paper analyzed the stability of fixed point by Jury´s criteria and studied the basin of attraction of fixed point via numerical simulation. The results show that the duopoly game model has only one fixed point which is locally stable, and the basin of attraction of fixed point will gradually decrease when combination point of parameters is close to the right boundary of basin of attraction.