Title :
The Mechanism of Transaction: Value Equilibrium Model of A Bargaining Game Between Two Rational Agents
Author_Institution :
Dept. of Econ., Dalian Univ. of Technol., Dalian
Abstract :
Transactions are the most common phenomenon in market economy. But in theoretical research, modeling a transaction is a complex problem unsolved. In this paper, firstly, natural rationality (A) is defined as nonlinear function of agent\´s benefit (B) and cost (C), and A=max(B/C). This mathematical model of natural rationality can be considered as one answer to Aumann\´s "open problem". Secondly, Three basic definitions of neutrality value system for market economy are constructed: commodity value, seller value and buyer value. Thirdly, value equilibrium of a bargaining game is modeled when the seller value is equal to the buyer value, and equilibrium price solution in a transaction is obtained. Finally, On these basis, the sequential bargaining process between two rationality agents (a seller and a buyer) is modeled in a time series by analytical geometry.
Keywords :
game theory; geometry; nonlinear functions; pricing; rational functions; time series; Aumann open problem; analytical geometry; buyer value; commodity value; equilibrium price solution; market economy; mathematical model; neutrality value system; nonlinear function; rational agent; seller value; sequential bargaining game process; time series; transaction mechanism; value equilibrium model; Cost accounting; Game theory; Geometry; Mathematical model; Solid modeling; Time series analysis;
Conference_Titel :
Wireless Communications, Networking and Mobile Computing, 2008. WiCOM '08. 4th International Conference on
Conference_Location :
Dalian
Print_ISBN :
978-1-4244-2107-7
Electronic_ISBN :
978-1-4244-2108-4
DOI :
10.1109/WiCom.2008.2619
