Criteria for Identification of Financial Pyramid Schemes and Simulating of their Functioning
Journal Title: Бізнес Інформ - Year 2014, Vol 11, Issue 0
Abstract
In the article criteria of financial pyramid schemes are considered, which allows to formulate definitions of these phenomena on base of economic and legal positions, and to allocate financial pyramids among other types of financial relations. The main forms of functioning of financial pyramid schemes are covered. Approaches to modeling of financial pyramid schemes are generalized. The model of functioning of a financial pyramid scheme is proposed, which allows to divide the time of its existence into discrete periods. Through iterations on the basis of the proposed system of formulas, dynamics of a number of interrelated indicators of a financial pyramid can be calculated. The mathematical apparatus used in the model allows to display in diagram form different aspects of functioning of financial pyramid schemes. It is specified, that impossibility to fulfill the promised payments may result in a sudden collapse of a financial pyramid scheme, due to the cessation of contributions, though continuation of its functioning with a gradual decline in activity is possible as well.
Authors and Affiliations
Oleg Pidkhomnyi
Keywords
Related Articles
- EP ID EP132355
- DOI -
- Views 57
- Downloads 0
The Current Status of Competition in the Primary Real Estate Market of the City of Kyiv
The article is aimed at studying the status of competition and the competition environment in the primary real estate market of the city of Kyiv. Approaches and indicators for analyzing the degree of market concentration...
The Comparative Analysis of International Suppliers as a Factor in the Competitive Advantages of a National Organization for the Provision of Engineering Services
In the context of the need to intensify the process of integration of national business in the global economic system, increased competition in global markets and national imperative existence of each organization is to...
Quality of Life as a Mechanism for Institutional Modeling of National Socio-Economic Development
The article is aimed at analyzing the socio-economic phenomenon of the quality of life from institutional positions, allowing to provide the quality of life as an organic system element of socio-economic reality and incl...
Guidelines Determine the Stage of the Life Cycle of the Organizational Culture of Trade
In the article the guidelines definition stage of the life cycle of the organizational culture of trade is investigated. The main trends of forming the organizational culture of trade is defined. The basic approaches to...
Factors of Influence on the Insurance Market Financial Security
The article studies the basic factors of influence on the level of insurance market financial security, sources of its emergence and their basic interconnections. It characterizes the peculiarities of some determinants o...