Article ID: | iaor20014115 |
Country: | Netherlands |
Volume: | 88 |
Start Page Number: | 361 |
End Page Number: | 377 |
Publication Date: | Jun 1999 |
Journal: | Annals of Operations Research |
Authors: | Pasetta Vesna |
This paper addresses a class of divide asset games with externalities, where transfers among players are not observed over the traditional economic devices but may, nevertheless, crucially determine the outcome of the game. In particular, the issues are discussed over a divide the money game where externalities take the form of bribes. The theory of operator algebras in dynamical systems and the theory of unbounded derivations are applied to obtain an insight into economic phenomena, embodying a process of formation and institutionalization of externalities that arise and are in focus within this setting of the model. The suggested approach offers a better insight into the flows of economic wealth among the agents, and can be effectively used in searching for an optimal control of transfers in conflict situations within a nonstandard economic environment.