FAIR REDISTRIBUTION IN FINANCIAL MARKETS A GAME THEORY COMPLETE ANALYSIS
David Carfì () and
Francesco Musolino ()
Journal of Advanced Studies in Finance, 2011, vol. 2, issue 2, 74-100
Abstract:
The aim of this paper is to propose a methodology to stabilize the financial markets using Game Theory and in particular the Complete Study of a Differentiable Game introduced in the literature by David Carf Specifically we will focus on two economic operators a real economic subject and a financial institute a bank for example with a big economic availability For this purpose we will discuss about an interaction between the two above economic subjects the Enterprise our first player and the Financial Institute our second player The only solution which allows both players to win something and therefore the only one desirable is represented by an agreement between the two subjects the Enterprise artificially causes an inconsistency between spot and future markets and the Financial Institute who was unable to make arbitrages alone because of the introduction by the normative authority of a tax on economic transactions that we propose to stabilize the financial market in order to protect it from speculations takes the opportunity to win the maximum possible collective social sum which later will be divided with the Enterprise by contract
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:srs:jasf00:v:2:y:2011:i:2:p:74-100
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