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 86
- Downloads 0
The Financial and Economic Crisis and the Consumer Society: Socio-economic Aspects in Ukraine
The article is devoted to the basic theory for the origin of the financial and economic crises and the factors of their forming. Presents the main features of the consumer society in the world and in Ukraine, as well as...
Mathematical Model of the Information Flow
When assessing effect from conducting measures on managing material, information and financial flows in logistical systems of enterprises, a need arises in creation of information systems with the use of analytical instr...
Model of the Formation of Employer Brand
The purpose of the article is to study the existing approaches to modeling the formation of employer brand. The model for the formation of employer brand by different foreign scientists was analyzed and generalized. Anal...
The influence of shadow economy sector on competitiveness of national economy
The paper deals with the analysis of the rise of informal sector and the character of its composition. The influence of informal sector on the composition and the character of the national economy is discussed.
A Methodical Approach to Surveying Targeted Groups of Users of Services, Provided by Higher Educational Institutions
The article is aimed at developing methods of surveying the target groups of users of services, provided by higher educational institutions. The developed methods are proposed to identify the needs of users of educationa...