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Academic Journal of Business & Management, 2020, 2(5); doi: 10.25236/AJBM.2020.020507.

Based on Dynamic game: The best behavioral strategies between campus loan company and students

Author(s)

Yuxuan Yang

Corresponding Author:
Yuxuan Yang
Affiliation(s)

Franklin and Marshall College, Pennsylvania 17603, United States
yyang2@fandm.edu

Abstract

This paper researches about the behavior choice and strategies campus loan and student based on game theory. Firstly, it discusses the current situation and causes of campus loans .Then, it still studies the business model of campus loan company and the reasons for its high interest. By determining the target customer group of campus loans company, it is easy to understand the main motivation behind them to apply for loans. Moreover, focusing on students’ choice about repaying and strategies and action of campus loan company. Based on the actual situation and theoretical analysis, this paper constructed a perfect information dynamic game model and get the sub-game perfect Nash equilibrium. This article can provide a theoretical basis for universities to manage students application on campus loans. Also, financial institutions can formulate the better and complete policies based on this passage. University students who need loans can also get more scientific analysis to protect them from illegal campus loans.

Keywords

Campus Loan Company, dynamic game, advance consumption, rational human

Cite This Paper

Yuxuan Yang. Based on Dynamic game: The best behavioral strategies between campus loan company and students. Academic Journal of Business & Management (2020) Vol. 2, Issue 5: 63-74. https://doi.org/10.25236/AJBM.2020.020507.

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