The Stability Analysis of Duopoly Investment Model with Bounded Rationality Based on China's Entry into the WTO

Under the background of China's entry into the WTO and the reforms of Chinese state-owned enterprizes, this paper brings the duopoly game model with bounded rationality into investment field, and sets up a dynamic investment model. It uses the non-linear theory to analyze the stability of the model; furthermore, it expounds influential factors in this investment. The research finds that the change of each factor may influence the stability of investment. Fi- nally, it indicates that investors' expansion in investment for profits may cause the phenomena of chaos.