A Concerning View In The Liquidity Crisis Through The Game Theory
AbstractThe aim of this paper is to provide a substantiating view on the crises started in 2007 and of which consequences transcended around the world recession. The paper is, essentially, based on a static game theory managing the limits of classic finance theory to provide satisfactory explanations of different financial events. Our intention was to analyze two cases of application of the game theory in the financial intermediation, with impact on the crisis. The proposed games correspond to deposits and loans. The end of the game managed to the idea that balance is reached only when the players (both deponent and borrower) will withdraw money from the bank together. This will have a major impact on the bank resources. The approach path manages to the idea that new considerations may come near the current crises through the game theory.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Romanian-American University in its journal Journal of Information Systems and Operations Management.
Volume (Year): 6 (2012)
Issue (Month): 1 (May)
game theory; financial intermediation; bank liquidity; economic crises; market efficiency;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Franklin Allen & Stephen Morris, 1998.
"Finance Applications of Game Theory,"
Center for Financial Institutions Working Papers
98-23, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alex Tabusca).
If references are entirely missing, you can add them using this form.