A Game Theoretic Approach for Analyzing the System of Incentives and Restraints Present in Chinese Financial Systems
Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=48470#.VD4YNFfHRK0 Author(s) Lin Hu , Fan Yang , Zijun Sha Affiliation(s) University of Toyama, Toyama, Japan . Central South University of Forestry and Technology, Changsha, China . University of Toyama, Toyama, Japan . ABSTRACT Currently, the most important issue with respect to financial institutions is how to motivate staff without providing perverse incentives. For instance, with the implementation of a proper incentive system, staff will be motivated via their self-interest to create financial innovations to better price and hedge risk. However, this system must also be designed with checks and balances in mind because it is also very easy to institute a syst...