A Game-theory-based Cause Analysis of the Subprime Mortgage Crisis
Huainian Zhu
Abstract
Huainian Zhu
Abstract
American subprime mortgage crisis has exerted a serious influence on the global financial market,and the influence is likely to be intensified in the future.Through a game-theory-based cause analysis of the subprime mortgage crisis,this paper establishes a model of game theory,by means of which it comes to the important conclusion that mortgage interest,appreciation rate of estate and degree of borrowers' psychological satisfaction result in the subprime mortgage crisis.This will provide beneficial reference to the solution of the crisis.
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American subprime mortgage crisis has exerted a serious influence on the global financial market,and the influence is likely to be intensified in the future.Through a game-theory-based cause analysis of the subprime mortgage crisis,this paper establishes a model of game theory,by means of which it comes to the important conclusion that mortgage interest,appreciation rate of estate and degree of borrowers' psychological satisfaction result in the subprime mortgage crisis.This will provide beneficial reference to the solution of the crisis.
Key concepts: Subprime mortgage crisis, Subprime crisis, Secondary mortgage market, Financial crisis, Mortgage underwriting, Shared appreciation mortgage, Real estate, Financial system