ČERNÍK, Ondřej and Radim VALENČÍK. Phenomenon of a “Snag" in financial markets and its analysis via the cooperative game theory. Contributions to Game Theory and Management. Saint Petersburg: Saint Petersburg State University, 2016, vol. 2016, Volume 9, p. 102-117. ISSN 2310-2608.
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Basic information
Original name Phenomenon of a “Snag" in financial markets and its analysis via the cooperative game theory
Authors ČERNÍK, Ondřej (203 Czech Republic, belonging to the institution) and Radim VALENČÍK (203 Czech Republic, belonging to the institution).
Edition Contributions to Game Theory and Management, Saint Petersburg, Saint Petersburg State University, 2016, 2310-2608.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50200 5.2 Economics and Business
Country of publisher Russian Federation
Confidentiality degree is not subject to a state or trade secret
RIV identification code RIV/04274644:_____/16:#0000126
Organization unit University of Finance and Administration
Keywords in English Nash bargaining problem; investment opportunities; human capital; financial markets; cooperative games; investment opportunities
Tags AR 2015-2016, jx, xJ6
Changed by Changed by: Ing. Dominika Moravcová, učo 21787. Changed: 20/4/2017 09:16.
Abstract
The paper describes the development of financial markets and changes in the nature of economic growth using the theory of c ooperative games. These issues have developed since the early 1950s und er the influ- ence of theoretical problems based on the game theory itself and interacting with real problems outside of the game theory (mostly from ec onomics). It turned out that various applications and contexts correspo nd to numerous possible solutions of standard tasks, e.g. Nash ( S; d ) bargaining problem. Some of the significant solutions are responded to questions arising in the context of social welfare economic theory, respectively is sues are related to the redistribution of wealth between different groups in pop ulation and the rationale of such reallocation. We show that under conditio ns of sufficiently effective financial markets the question of the relationship between efficiency and equality, which is typical of the theory of social welfar e, may be replaced by the question of making full utilization of investment opp ortunities asso- ciated with the acquisition, preservation and application of human capital. We define “sufficient efficiency of financial markets” as ability to fully utilize investment opportunities related – to put it simply – to huma n development, regardless of its initial assets or income position. This is related to the fact that instead of different ways of reasoning for solution ( S; d ) of the prob- lem we can take advantage of technical solution (based on the equality of marginal returns of investment opportunities, or rather ba sed on sum pay- ments maximization), e.g. the solution used in problem of op timal allocation of water (water allocation problem) (Brink, et al., 2011).
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