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A Concerning View In The Liquidity Crisis Through The Game Theory

Author

Listed:
  • Diana Larisa Țâmpu

    (ASE Bucharest, DSCQM, Doctoral School in Business Administration, Bucharest –Romania)

  • Carmen Costea

    (ASE Bucharest, Romania)

Abstract

The 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.

Suggested Citation

  • Diana Larisa Țâmpu & Carmen Costea, 2012. "A Concerning View In The Liquidity Crisis Through The Game Theory," Journal of Information Systems & Operations Management, Romanian-American University, vol. 6(1), pages 175-184, May.
    • Handle: RePEc:rau:jisomg:v:6:y:2012:i:1:p:175-184
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    File URL: http://www.rebe.rau.ro/RePEc/rau/jisomg/SP12/JISOM-SP12-A16.pdf
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    References listed on IDEAS

    as
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    3. Anjan V. Thakor, 1991. "Game Theory in Finance," Financial Management, Financial Management Association, vol. 20(1), Spring.
    4. 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.
    5. Boot, Arnoud W A & Thakor, Anjan V, 1994. "Moral Hazard and Secured Lending in an Infinitely Repeated Credit Market Game," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(4), pages 899-920, November.
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