Model of possible cooperation in financial markets in presence of tax on speculative transactions
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| Title | Model of possible cooperation in financial markets in presence of tax on speculative transactions |
| Authors | |
| Abstract | In this paper, we propose an economic and mathematical model to protect the financial markets from speculative attacks, by introducing a tax on financial speculative transactions. By using Game Theory, we focus on the interaction between two general players: a real economic subject (we call Enterprise) acting with hedging scopes and a bank (we call Financial Institute) acting with speculative purposes. We find different equilibria of our game, by considering friendly, selfless, selfish, fearful or aggressive behavior of players; we note that no equilibrium is good for both players, and each of them prevent at least one of the two economic subjects to obtain profits. So, we propose two different transferable utility solutions, in order to achieve a result satisfying both economic subjects and, at the same time, to achieve a condition promoting the stability of the financial markets in which our two players are interacting. |
| Publisher | Accademia Peloritana dei Pericolanti |
| Date | 2013-06-10 |
| Source | 0365-0359 |
| Rights | Articles and conference papers published in Atti della Accademia Peloritana dei Pericolanti – Classe di Scienze Fisiche, Matematiche e Naturali are distributed under the terms and conditions of a Creative Commons Attribution 3.0 Unported License (effective since 2009, Vol. 87). Correspondingly, authors who publish with this journal agree to the following terms:Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work´s authorship and initial publication in this journal.Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal´s published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access). |