Modelling "Horizontal" Interaction of Economic Agents with the Help of a Collection of Games
The subject of the article is modelling horizontal and vertical interaction of economic subjects, realised, in particular, by sales and employment contracts. Complexity of models of "horizontal" relationship is the reason of significantly smaller, compared to the models of "vertical" relationship, buildups. That is why, the article makes an effort to simplify the general model of "horizontal" interaction of economic agents. The article offers a model of "horizontal" relationship of two economic subjects, each of which can stick to a contract concluded between them, avoid its execution and control contract execution by its opposite. The article establishes that the sales contract could be determined by a collection of games used for modelling employment contract through decomposition of the game for describing of interaction of the general type. It specifies conditions of this decomposition. In other words, the sales contract model could be positioned as a generalisation of the employment contract model. Moreover, it formulates decision making by an individual agent with respect to distribution of limited resources between the control of the opposite and planning of own activity. The offered models could be applied in the contract theory, for example, for a more detailed description of the sales contract. It is planned to use the results in various subject fields through specification of payment functions of the model games. Better understanding of their nature with the help of study of the offered models would facilitate increase of quality and reasoning of contracts, for example, from the legal point of view. It is planned to conduct further development of studies in the direction of solutions of models that have the production type at the moment, finding conditions of the Nash equilibrium and analysing logic of evolution of interaction of counter-agents.
Volume (Year): (2013)
Issue (Month): 9 ()
|Contact details of provider:|| Web page: http://www.business-inform.net|
References listed on IDEAS
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.:
- Joseph E. Stiglitz, 1973.
"Incentives and Risk-Sharing in Sharecropping,"
Cowles Foundation Discussion Papers
353, Cowles Foundation for Research in Economics, Yale University.
- James A. Mirrlees, 1976. "The Optimal Structure of Incentives and Authority Within an Organization," Bell Journal of Economics, The RAND Corporation, vol. 7(1), pages 105-131, Spring.
- Steven Shavell, 1979. "Risk Sharing and Incentives in the Principal and Agent Relationship," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 55-73, Spring.
- George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, Oxford University Press, vol. 97(4), pages 543-569.
When requesting a correction, please mention this item's handle: RePEc:idp:bizinf:y:2013:i:9:p:90_94. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexey Rystenko)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.