Predicting agents’ investment behavior using game theory and bankruptcy problem

Document Type : Research Paper


Department of Mathematics and Computer Science, Shahed University, Tehran, Iran



This study considers two agents, risk-neutral and risk-averse ones, and studies their investment behavior. There are two investment options-safe investments such as a bank account and a risky investment in a company. The company runs a risky project. In the case of success, its return is more than the bank’s, and that is less in the case of failure. When the project fails, the company divides the left amount among the investors based on the proportional bankruptcy rule. We model the problem as a strategic game and explore its Nash equilibrium.


Articles in Press, Corrected Proof
Available Online from 13 July 2023
  • Receive Date: 15 October 2021
  • Revise Date: 23 November 2021
  • Accept Date: 15 December 2021