| Papers [1-15] of 100 :: [Page 1 of 7] | | Go to page : 1 2 3 4 5 6 7 —> | Search results on "GAME THEORY APPLIED CORPORATE FINANCE": |
|
|
Game Theory Applied to Corporate Finance, 2002.
How applications of game theory can be used to explain various observed phenomena in corporate finance.
1,955 words (approx. 7.8 pages), 7 sources, MLA, $ 62.95
»
Click here to show/hide summary
Abstract
This paper explains that traditional financial thinking relies on assumptions of certainty, complete knowledge and market efficiency and in this context, financial decisions should be relatively straightforward. In the real world though, many times what is observed deviates greatly from what would be expected using traditional financial thinking. This paper therefore uses different game theory models to more accurately explain observed financial decisions dealing with capital structure, corporate acquisitions and initial public offerings (IPOs).
From the Paper
"Game theory has made great strides in explaining many of the observed phenomena falling under corporate finance. One example is the capital structure decided upon by a firm's management. Capital structure deals with the firm's decision to raise funds through debt versus equity and what ratio of debt to equity should the firm maintain. Modigliani and Miller in 1958 showed that in perfect capital markets (i.e. no frictions and symmetric information) and no taxes a firm could not change its total value by altering its debt/equity ratio; thus capital structure is irrelevant. However in the real world, capital structure is carefully thought about by every company, and it is in fact not irrelevant because taxes do exist and capital markets are not perfect."
| |
|
Corporate Finance, 2007.
A discussion on corporate finance, focusing on efficient market behavior and behavioral finance studies.
1,606 words (approx. 6.4 pages), 7 sources, APA, $ 52.95
»
Click here to show/hide summary
Abstract
The paper examines corporate finance, focusing on the efficient market hypothesis. The paper further examines the behavioural finance school of thought, which argues that any investment decision is a gamble when investors are not fully aware of the future results of their actions. The paper discusses how, due to human psychology, investors often act irrationally, thereby decreasing the market transparency and predictability, together with decreasing market efficiency. The paper concludes that this increases the importance of recent behavioral finance studies, as capital markets are driven by purely human behavior and thus are subject to huge risks.
Outline:
Introduction
Behavioural Finance Approach to Market Efficiency Theory
Conclusion
References
From the Paper
"Fridson in his work argues that all the investors have their sentiments, or biases when considering risk and making investment decisions. Thus, the risk premium on any asset is the summary of fundamental premium set by efficient investors and of sentiment premium or the investors judgements errors. Also, there are asset prices bubble theories which also prove that in some points of time investors do behave irrationally and overestimate or underestimate factual fundamentals which leads to none fundamental increases in some asset prices followed by further price crash."
| |
|
Industrial Relations and Game Theory, 2007.
This paper applies game theory (GT) to industrial relations, especially in the area of collective bargaining.
1,770 words (approx. 7.1 pages), 12 sources, APA, $ 57.95
»
Click here to show/hide summary
Abstract
This paper explains that industrial relations within the context of the British economy and the character of its workforce have long been dominated by the power and presence of its unions. The author points out that, because of the stakes involved in the collective bargaining negotiations, game theory (GT) and coalition theory, which is a subset of GT, is relied upon to achieve fractional improvements in contract negotiations. The paper relates that game theory (GT) is most often associated with a zero-sum scenario; however, it also encompasses positive-sum and negative-sum scenarios where a party may gain or win without the necessity of an equivalent loser. The author relates that, because of the necessity to form alliances in order to reach consensus among diverse stakeholders, industrial relations often employ a type of GT known as coalition theory,which examines the nature, reasons and underlying dynamics of these coalitions that form in all the various settings. The paper includes graphs.
Table of Contents
Introduction
Game Theory
Industrial Relations and Game Theory
Conclusion
From the Paper
"Of particular value has been research integrating sender-receiver frameworks that analyze how knowledge is transferred, both symmetrically and asymmetrically, with GT whereby advantages gained through asymmetrical knowledge transfer creates zero-sum advantages for one player or the other in an industrial relations setting such as the collective bargaining platform. This concept is explained in terms of being a signal that one side uses to inform the other of a possible solution, such as concessions that can be made on benefits."
| |
|
International Corporate Finance, 2005.
Examines the issues of corporate finance and government intervention from a global perspective.
2,314 words (approx. 9.3 pages), 5 sources, APA, $ 71.95
»
Click here to show/hide summary
Abstract
Perhaps the first issue addressed in this paper is a consideration of the possible conflict caused by various governmental regulations on the corporate goal of increasing shareholder wealth is this: Is there any effect? The second question examined-and perhaps the more important one in today's global business and social environment-is this: Is the maximization of shareholder wealth the appropriate goal for a business entity? The paper shows that, indeed, with Europe embracing human rights as a major issue, and in view of the current divisive atmosphere in the United States concerning both corporate governance and governmental transfer payment restructuring (Social Security), it seems advisable to consider these questions from a broad-based global perspective and also from the perspective of other 'stakeholders' in global business besides the shareholder. These stakeholders would include, of course, all citizens of the globe and not merely those with sufficient income to become stakeholders.
Paper Outline:
Introduction
Tavis' Model
Demonstrations from the Shareholder Norm
References
From the Paper
"While that is a normative theory that gives rise to a complex of actions, the stakeholder theory proposed by Tavis "is more of a description of who has a stake in the activities of the firm than a normative theory" (2002 Database). Tavis quotes R. Edward Freeman, who defined stakeholders: "A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization's objectives" (2002, Database). This much more inclusive definition makes it clear that unless a corporation is living on a planet of its own, a closed and moreover perfect system of equality of risk, reward, 'collateral damage' and any effect imaginable, then it is incumbent on management of that corporation to consider not merely the shareholders as traditionally defined."
| |
|
Brealey and Myers' "Principles of Corporate Finance".
This paper discusses cost/benefit analysis, as presented in Brealey and Myers' "Principles of Corporate Finance".
765 words (approx. 3.1 pages), 0 sources, $ 27.95
»
Click here to show/hide summary
Abstract
This paper explains that, to use cost/benefit analysis, add up the value of the benefits of a course of action and subtract the associated costs.The author stresses there are times, such as sizing maintenance efforts or dissecting performance issues, when a cost/benefit analysis will not be informative or the right avenue to take for decision-making. The paper stresses that performance modifications may or may not have anything to do with functionality. Example.
From the Paper
"In its simplest form, cost/benefit analysis is applied only with financial costs and financial benefits. For instance, a simple cost/benefit analysis of revamping equipment in a factory would measure the cost of the update and subtract this from the economic benefit of making the changes. However, in a more complex analysis, there are intangibles that must be included such as the personal impact on the individuals who had a slowdown during the revamp and, on the other hand, worker satisfaction with the new approach that increased efficiency and stressed ergonomic factors."
| |
|
Game Theory and Foreign Policy, 2003.
Examines the importance of game theory in analyzing foreign policy decision-making and outcomes and its compatibility with other foreign policy models and systems.
2,869 words (approx. 11.5 pages), 7 sources, APA, $ 85.95
»
Click here to show/hide summary
Abstract
Game theory is the use of mathematical models to predict the outcome of a dispute or interaction between two or more independent actors. It has been applied in a wide range of contexts, including gambling, business and international relations. This essay examines the importance of game theory when analysing the foreign policy decision-making process. It argues that while simple games such as the Prisoner's Dilemma may not illuminate the process on their own, more complex models can offer a systemic device by which foreign policy can be analyzed more accurately.
From the Paper
"Perhaps the most widely recognised game is the Prisoner's Dilemma, which examines the choices faced by two people arrested for the same crime, and observes the likelihood that they would both accuse the other one, and thus both go to jail. When used in foreign policy analysis, it is often used to describe the nature of arms races, or the possibility of nuclear fallout. This is a non-zero-sum game, a game where it is possible for both players to lose, or to win (as opposed to a zero-sum game, where one actor's gain is always equal to another actor's loss)."
| |
|
The Game Theory, 2006.
A comprehensive look at game theory, a separate and interdisciplinary approach to the study of human behavior.
1,915 words (approx. 7.7 pages), 7 sources, MLA, $ 61.95
»
Click here to show/hide summary
Abstract
This paper takes a look at the game theory, founded by mathematician John von Neumann, and the mathematics, social and behavioral sciences that are involved. This paper also reviews the definition of a game and the fundamental decision theory, a crucial factor pertaining to the game theory.
From the Paper
"A game refers to a strategic situation that involves at least two rational and intelligent individuals called players. The fundamental result of decision theory, which forms the foundation of game theory as well, is that each player's goal is to maximize the expected value of his or her own payoff. These payoffs are measured on some utility scale, which is merely a numeric depiction of each outcome that can be gained through the player's actions. Individuals have preferences that give them the opportunity to rank the outcomes with respect to one other. For each pair of outcomes, a player can say whether he or she likes one better than the other or whether he or she is indifferent about the two.
The logical roots for game theory are in Bayesian decision theory. In fact, game theory can be seen as an extension of the decision theory (Myerson, 1991, p.5). In general, a decision theory is an interdisciplinary area of study for practitioners in mathematics, statistics, economics, philosophy, management and psychology. "
| |
|
Game Theory-The New Marxism, 2006.
An analysis of Marxist economics with regards to foreign relations and how this perspective compares to modern game theory.
2,700 words (approx. 10.8 pages), 7 sources, $ 106.95
»
Click here to show/hide summary
Abstract
This paper analyzes Marxist economics from the perspective of foreign relations and how foreign relations is conducted based on the benefits that one nation can receive in relations at the expense of other nations. This Marxist perspective is compared to modern game theory and its sub-component, coalition theory in that game theory's basic assumption of zero-sum outcomes is a Marxist interpretation of capitalism in acceptable guise.
From the Paper
"Marxist economics has suffered in stature chiefly due to its being co-opted by the various communist political regimes that relied on its basic assumption upon which to construct their derivative economic models; most commonly of which was the Soviet economic model with its central planning and misconstrued allocation of resources (Wood, 2004). However, Marxist economics were never fully understood by these communist regimes and certainly not faithfully applied. At its core, Marxist economics accurately reflects the innate shortcomings of free market capitalism and the political structure that arise from them. One of the key differences that Marxist economics points out between itself and that of capitalist economics is the valuation of labor or the labor theory of value (Wood, 2004, pp.136-39)."
| |
|
The Game Theory Economic Model, 2006.
A review of the game theory and its applications in the post-war period.
1,350 words (approx. 5.4 pages), 4 sources, $ 53.95
»
Click here to show/hide summary
Abstract
This paper reviews the historical development of game theory, as found in the work of Neumann, Nash, and others. This paper shows how the basic outlines of game theory are drawn to show how it developed as a theory for decision making. The paper then suggests the historical events driving the mathematicians who developed the theory, as a means of showing how world events were responded to in the work of these men.
From the Paper
"In the mid-Twentieth Century, as the world was preparing for, involved in, and coming out of World War II, a number of mathematicians came to hold great importance for their development of an economics model called game theory in which rational (and irrational) actors are pitted against each other in theoretical constructs to determine the choices available to persons living in the world. The most important among this group were John von Neumann and Oscar Morgenstern, who virtually invented the concept of game theory in their book Theory of Games and Economic Behavior, and John Nash, who greatly expanded upon the concepts of game theory to include complex games with multiple players. The applications of game theory were many, but perhaps the most important were found in the struggle of military powers around geopolitical matters."
| |
|
Airline Competition & Game Theory, 1999.
Applies game theory to airlines' fare-setting. Description of economic & mathematical theory, modeling & strategies, yield management, zero-sum.
2,925 words (approx. 11.7 pages), 11 sources, $ 103.95
»
Click here to show/hide summary
From the Paper
"ABSTRACT
One research question was addressed in this study. That question is as follows: ?Can the competitive behavior of air transportation companies in the United States market in relation to setting fares be explained as an application of game theory??
Game theory, as applied in the airfare wars. forecasts how competitors will respond when confronted with certain competitive situations. When formulating business strategy, no company can afford to ignore how competitors will behave. Game theory is based on the premise that in any competitive situation there are factors at work which lend themselves to mathematical representation and analysis. In turn, these representations and analyses will help explain how a result will occur.
The findings of this research indicate that the airfares competition gives the appear.."
| |
|
Games Theory and Error, 2002.
A look at games theories.
2,400 words (approx. 9.6 pages), 5 sources, $ 89.95
»
Click here to show/hide summary
Abstract
This paper examines games theory. Specifically, it focuses on error in non-zero sum games epitomized by Nash's 'prisoner's dilemma'. It outlines the rudiments of non-zero sum games, demonstrates the impact of error and considers ways of reducing it.
| |
|
Corporate Finance, 2003.
Examines government regulation of businesses.
2,025 words (approx. 8.1 pages), 12 sources, $ 71.95
»
Click here to show/hide summary
Abstract
The paper examines conflicts that arise when various types of regulations (environmental, human resources, financial) are imposed on business entities, creating difficulties in maximizing shareholder wealth.
From the Paper
"Corporate Finance:
Regulations, Ethical Behavior and Shareholder Value
The purpose of this essay is to examine the conflicts that can arise when various types of governmental regulations (e.g., environmental, human resources, and financial) are imposed ..."
| |
|
Corporate Finance, 2005.
This paper goes over several details of information from stock earnings to p/e ratios and the CAPM equation. It is very detailed as far as the equatio...
4,725 words (approx. 18.9 pages), 11 sources, $ 187.95
»
Click here to show/hide summary
Abstract
This paper goes over several details of information from stock earnings to p/e ratios and the CAPM equation. It is very detailed as far as the equations used and I have uploaded an excel file for reference to aid in the explanation.
From the Paper
U.S. Bond Market Training Document Bonds tend to be one of the most stable investments in an unstable economy. In fact the trends of an economy can be determined by watching the sales of bonds. As bonds sales increase then it is probable that something might be going on to increase the instability of that economy and therefore make investors conservative in their investment practices. This is also true when the sales of bonds go down. Often this is a sign that things are going well and even though stocks are more fragile and contain higher risk factors that these factors have been forgone, to some degree, for a short period of time. Often this is all it takes for investors to gain short returns on stocks in which they might normally not have invested.
| |
|
Micro-economics Game Theory, 2005.
Examines how the analysis of strategic behavior in oligopoly theory is performed by economists.
1,522 words (approx. 6.1 pages), 4 sources, MLA, $ 50.95
»
Click here to show/hide summary
Abstract
Economists analyze strategic behavior in oligopoly theory by the use of a spectrum of models ranging from the static to the currently more popular and most recent game--theoretical models. This paper shows, however, that it's important to distinguish models or strategic behavior from traditional static models of oligopoly. Moreover, it becomes useful to present a number of strategic game theory models and particularly those incorporating strategic commitment to gain an appreciation for precisely how economists analyze strategic behavior.
Paper Outline:
Thesis Statement
A Brief Historic Overview
The Courtnet Framework
The Stackelberg Model'
Game Theory - Pros and Cons
Irrevocable Commitment
Asymmetric Information
Bibliography
From the Paper
"Game theory has generated a great deal of interest in oligopoly although it has not risen to prominence without controversy. Its detractors argue that game theory has made little contribution to our understanding of oligopoly behavior and it has been likened to the study of Latin. Quoting Fisher, "Latin, like game theory might not be interesting for its own sake but that studying it helps to systematize the way one thinks about language." Fisher also accuses theorists of dealing with every problem in game-theoretic terms including problems that are easier to deal with in other forms."
| |
|
Incorporating Fairness into Game Theory and Economics, 2002.
A referee report on Matthew Rabin's intention driven model of fairness.
2,340 words (approx. 9.4 pages), 6 sources, APA, $ 71.95
»
Click here to show/hide summary
Abstract
Matthew Rabin?s model of fairness is based on Geanakoplos, Pearce and Stacchetti's (1989) notion of ?psychological game?, in which payoffs depend on actions and on beliefs about actions. The paper describes how Rabin?s model shows how fairness expectations lead to different results than standard theory and demonstrates some general implications of fairness on game theory and economics. This paper contains a short description of Rabin?s model, gives some examples, propositions, proofs and critique.
From the Paper
"Suppose that (a1,a2) is a mutual-max outcome. Then both f1 and f2 must be nonnegative, thus reflect a positive regard for each other.
If each player chooses a strategy which maximizes both his own material well-being and the well-being of the other player this must maximize his own utility. In a case of mutual min outcome the f1 and f2 is non positive, thus, f~j(bj,ci)[1+fi(a1,bj)] is non negative. If each player is choosing a strategy which maximizes his own material well-being , this must maximize his utility."
|
|
|
