The Cournot Model with Incomplete Information Based on the RDEU Theory

The classical Cournot model and the current model of oligopolistic competition have some serious defects which are inconsistent with the serious reality. These are complete information and rational player .Based on the RDEU theory, emotion function will be introduced to the game process. It constructs a RDEU-Cournot model with incomplete information .This model is capable to depict the relationship between the Nash equilibrium in the problem of duopolies game and the emotion preference of manufacturers. Moreover, the classical Cournot is a special case of it. On this basis, this paper obtains the Nash equilibrium of the RDEU-Cournot model, and the example of a Nash equilibrium dynamic evolution of modeling analysis.