Geodesic
A Game Model of Economic Behavior in an Institutional Environment
Contributions to game theory and management, Tome 2 (2009), pp. 260-270.

Voir la notice de l'article provenant de la source Math-Net.Ru

A game model proposed here helps to reveal a relation between institutions (i.e. norms and rules used in a society) and decisions of private agents. Players in the game are a government and numerous private agents. Activities of the private agents (the second player) are modeled as paths in an oriented graph with a finite set of nodes. The government (the first player) establishes and announces an institutional system — a set of actions (e.g. taxes, incentives etc.) on the arcs of the graph. A move of a private agent yields her and the government gains depending on the institutional system created by the government. The players try to maximize discounted sums of utilities given discount factors and horizons. The government has no information about a precise number and initial positions of the private agents. The basic question is: can the government establish a consistent institutional system corresponding to a Nash equilibrium? We show that in a specific case of myopic private agents a consistent institutional system does exist. A constructive proof is provided. A case of an almost myopic government is considered in detail. A possible application of the game model is a problem of effectiveness of the government control in science and R sector in Russia which became actual in connection with a reform started by the Russian government recently.
Keywords: iterated games, economic behavior, myopic agents, institutions, dynamic programming. 
@article{CGTM_2009_2_a20,
     author = {Vladimir D. Matveenko},
     title = {A {Game} {Model} of {Economic} {Behavior} in an {Institutional} {Environment}},
     journal = {Contributions to game theory and management},
     pages = {260--270},
     publisher = {mathdoc},
     volume = {2},
     year = {2009},
     language = {en},
     url = {http://geodesic.mathdoc.fr/item/CGTM_2009_2_a20/}
}
TY  - JOUR
AU  - Vladimir D. Matveenko
TI  - A Game Model of Economic Behavior in an Institutional Environment
JO  - Contributions to game theory and management
PY  - 2009
SP  - 260
EP  - 270
VL  - 2
PB  - mathdoc
UR  - http://geodesic.mathdoc.fr/item/CGTM_2009_2_a20/
LA  - en
ID  - CGTM_2009_2_a20
ER  - 
%0 Journal Article
%A Vladimir D. Matveenko
%T A Game Model of Economic Behavior in an Institutional Environment
%J Contributions to game theory and management
%D 2009
%P 260-270
%V 2
%I mathdoc
%U http://geodesic.mathdoc.fr/item/CGTM_2009_2_a20/
%G en
%F CGTM_2009_2_a20
Vladimir D. Matveenko. A Game Model of Economic Behavior in an Institutional Environment. Contributions to game theory and management, Tome 2 (2009), pp. 260-270. http://geodesic.mathdoc.fr/item/CGTM_2009_2_a20/

[1] Boldrin M., Montrucchio L., “On the indeterminacy of capital accumulation paths”, Journal of Economic Theory, 40 (1986), 26–39 | DOI | MR | Zbl

[2] Deneckere E., Pelican S., “Competitive chaos”, Journal of Economic Theory, 40 (1986), 13–25 | DOI | MR | Zbl

[3] Galbraith G. K., The anatomy of power, Houghton Mifflin, Boston, 1983

[4] Kraynov D. E., Matveenko V. D., “A game model of interaction between the government and the science sector”, V Moscow International Conference on Operations Research (ORM2007) dedicated to the outstanding Russian scientist Nikita N. Moiseev 90th birthday. Proceedings, MAXPress, Moscow, 2007, 276–278 (in Russian)

[5] Kraynov D. E., Matveenko V. D., “Modeling of government's control of research and innovation activities in the Russian economy”, Public Sector Transition: New Quality of Management, 9th International Conference, Conference Papers, v. 2, St. Petersburg State University, St. Petersburg, 2007, 105–149 (in Russian)

[6] Matveenko V. D., “Optimal trajectories of the scheme of dynamic programming and extremal powers of nonnegative matrices”, Diskretnaya Matematika, 2 (1990), 59–71 (in Russian) | MR | Zbl

[7] Matveenko V. D., “The structure of optimal trajectories of a discrete deterministic scheme with discounting”, Discrete Mathematics and Applications, 8 (1998), 637–651 | MR | Zbl

[8] Mueller D., Public choice, v. III, Cambridge University Press, North Cambridge, 2003 | Zbl

[9] North D., Institutions, institutional change and economic performance, Cambridge University Press, North Cambridge, 1990