arXiv subjects

Michael C. Nwogugu

Publications and source records attributed to Michael C. Nwogugu.

7 recordsLinked to original sources

arXiv2020

Some Issues In Securitization And Disintermediation

Securitization has become prevalent in many countries, and has substantial impact on government monetary policy and fiscal policy which have not yet been adequately analyzed in the existing literature. This article develops optimal conditions for efficient securitization, identifies constraints on securitization, and analyzes the interactions of capital-reserve requirements and securitization. This article introduces new decision models and theories of asset-securitization.

q-fin.GN↗

arXiv2020

Issues In Disintermediation In The Real Estate Brokerage Sector

This article introduces new models of disintermediation of the real estate broker by the buyer or the seller. The decision to retain a real estate broker is critical in the property purchase/sale process. The existing literature does not contain analysis of: 1) information asymmetry, 2) the conditions under which it will be optimal to disintermediate the broker, 3) social capital and reputation, 4) the impact of different types of real estate brokerage contracts. The article shows that dis-intermediation of the real estate broker by the seller or buyer may be optimal in certain conditions.

q-fin.GN↗

arXiv2020

Decision-Making, Sub-Additive Recursive "Matching" Noise And Biases In Risk-Weighted Stock/Bond Index Calculation Methods In Incomplete Markets With Partially Observable Multi-Attribute Preferences

While Indices, Index tracking funds and ETFs have grown in popularity during then last ten years, there are many structural problems inherent in Index calculation methodologies and the legal/economic structure of ETFs. These problems raise actionable issues of Suitability and fraud under US securities laws, because most Indices and ETFs are misleading, have substantial tracking errors and dont reflect what they are supposed to track. This article contributes to the existing literature by: a) introducing and characterizing the errors and Biases inherent in risk-adjusted index weighting methods and the associated adverse effects; b) showing how these biases/effects inherent in Index calculation methods reduce social welfare, and can form the basis for harmful arbitrage activities.

q-fin.GN↗

arXiv2020

On The Choice Between A Sale-Leaseback And Debt

This article introduces decision models for commercial real estate leasing. The concepts and models developed in the article can also be applied to equipment leasing and other types of leasing.

q-fin.GN↗

arXiv2020

Equity-Based Incentives, Production/Service Functions And Game Theory

EBIs/ESOs substantially change the traditional production/service function because ESOs/EBIs can have different psychological effects(motivation or de-motivation), and can create intangible capital and different economic payoffs. Although Game Theory is flawed, it can be helpful in describing interactions in ESO/EBIs transactions. ESOs/EBIs involve two-stage games and there are no perfect Nash Equilibria for the two sub-games. The large number of actual and potential participants in these games significantly complicates resolution of equilibria and increases the dynamism of the games given that players are more sensitive to other peoples moves in such games. This article: a) analyzes how ESOs/EBIs affect traditional assumptions of production functions (in both the manufacturing and service sectors), b) analyzes ESOs/EBIs transactions using game theory concepts, c) illustrates some of the limitations of game theory.

q-fin.GN↗

arXiv2020

Shapley Value Is not Applicable To Network Access Pricing

Although Game Theory principles have been used extensively in developing analytical models for access pricing in Internet networks, transmission pricing in electric power networks and access pricing in telephone/cable networks, most of the existing literature omits the effects of illegal filesharing. This article shows that: 1) Shapley Value analysis is generally inaccurate for most situations, and 2) Shapley Value analysis are generally not applicable to network analysis.

cs.GT↗

arXiv2020

Complexity, Stability Properties of Mixed Games and Dynamic Algorithms, and Learning in the Sharing Economy

The Sharing Economy (which includes Airbnb, Apple, Alibaba, Uber, WeWork, Ebay, Didi Chuxing, Amazon) blossomed across the world, triggered structural changes in industries and significantly affected international capital flows primarily by disobeying a wide variety of statutes and laws in many countries. They also illegally reduced and changing the nature of competition in many industries often to the detriment of social welfare. This article develops new dynamic pricing models for the SEOs and derives some stability properties of mixed games and dynamic algorithms which eliminate antitrust liability and also reduce deadweight losses, greed, Regret and GPS manipulation. The new dynamic pricing models contravene the Myerson Satterthwaite Impossibility Theorem.

cs.GT↗