IDEAS home Printed from https://ideas.repec.org/a/ods/journl/v8y2019i1p1-5.html
   My bibliography  Save this article

A Game-Theoretic Model for “Zero-Interest” Instalment Schemes

Author

Listed:
  • Dash, M.

    (Alliance University, India)

  • Motukuri, T.

    (ICICI Bank, India)

Abstract

The present study extends the previous analysis by proposing a game-theoretic model for the optimal choice of ‘zero-interest’ instalment scheme. The choice of scheme is analysed in two stages: the extent of down-payment the consumer is willing to pay, and the payment period that the financing institution is willing to offer. The study suggests that, by restructuring loan repayment terms, it may sometimes be possible to benefit both financial institutions and consumers. Further extension of the present study would be possible using multi-criteria decision methods, as individual consumers need to balance between decision criteria including the amount of down-payment that they have to immediately pay, the period over which they can spread the payments, and the overall net present value of the scheme in their choice of scheme.

Suggested Citation

  • Dash, M. & Motukuri, T., 2019. "A Game-Theoretic Model for “Zero-Interest” Instalment Schemes," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(1), pages 1-5, February.
    • Handle: RePEc:ods:journl:v:8:y:2019:i:1:p:1-5
    as

    Download full text from publisher

    File URL: http://www.jami.org.ua/Papers/JAMI_8_1_2019_1-5.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alexander G. Yankovoy & Nadezhda V. Melnik, 2012. "Modified Internal Rate Of Return Of The Investment Project," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 1(4), pages 502-508.
    2. Anatoliy G. Goncharuk, 2012. "Applied Aspects Of Investment Decision Making," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 1(4), pages 469-475.
    3. Anatoliy G. Goncharuk, 2015. "Application of the Investment Theory in Research and Practice," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(2), pages 119-126.
    4. Mihir Dash & Teja Motukuri, 2018. "A Model of the Net Present Value of “Zero-Interest” Instalment Schemes," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 179-184, November.
    5. Alexander G. Yankovoy, 2012. "An analysis of dependence of the NPV of investment project from the price of invested capital," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 1(2), pages 294-303.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mihir Dash & Teja Motukuri, 2018. "A Model of the Net Present Value of “Zero-Interest” Instalment Schemes," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 179-184, November.
    2. Anatoliy G. Goncharuk, 2015. "Application of the Investment Theory in Research and Practice," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(2), pages 119-126.
    3. Anurag Agarwal & Ajay Verma & Rajiv Kumar Agarwal, 2016. "Factors Influencing the Individual Investor Decision Making Behavior in India," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(4), pages 211-222, November.
    4. T. Mohanasundaram & P. Karthikeyan, 2017. "Decisive Economic and Stock Market Indicators on Foreign Institutional Investments: Evidence from India," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(1), pages 43-57, February.
    5. Mihir Dash, 2018. "Modelling the Efficient Frontier: An Empirical Study in the Indian Stock Market," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(2), pages 83-94, May.

    More about this item

    Keywords

    ‘zero-interest’ instalment scheme; game-theoretic model; multi-criteria decision methods;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ods:journl:v:8:y:2019:i:1:p:1-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anatoliy G. Goncharuk (email available below). General contact details of provider: https://edirc.repec.org/data/dmonaua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.