Bertrand game model and its equilibrium analysis based on RDEU theory

The current researches on oligarchic price competition model are on the premise of rational players, but there are larger deviations between the results and realities. In the framework of RDEU decision theory, the paper makes a new study on Bertrand price game model. Then it constructs a RDEU-Bertrand game model containing incomplete information of players' emotional preferences by the introduction of emotional factors reflecting their interactions under different risk preferences. At last it determines Nash equilibrium, and makes an analysis of dynamic evolution on it by numerical simulation.