Based on the rapidly changing market, manufacturers need to understand the market information and reaction of competitors for their stable development and profit maximization, determine the investment strategies of the next period. In the duopolistic market, a dynamic Cournot investment game of nonlinear price function with two participants using heterogeneous expectations is established. One participant is naïve, the other participant is boundedly rational. First of all, the stability of the equilibrium point of the system is studied by using Jury criteria. Then, the complex phenomena of the system are shown by numerical simulation, system parameter variations have great effects on the system stability which is found. Finally, the chaotic phenomenon is controlled by using the time-delay feedback control method. The stability region of the control coefficient is analyzed in different system parameter.

dynamic system, Cournot game, feedback control, nonlinear price function.