Research on differential game strategy of debt restructuring supported by government

This paper studies the debt restructuring equilibrium decision problem composed of creditors and debt enterprises with the participation of the government and asset management companies. With the differential game, the dynamic optimization models of debt restructuring under three situations: central...

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Bibliographic Details
Published in:PloS one 2023-04, Vol.18 (4), p.e0284044-e0284044
Main Authors: Zhao, Danyu, Song, Li, Han, Liangliang
Format: Article
Language:English
Subjects:
Asset management
Bankruptcy reorganization
Biology and Life Sciences
Company structure
Comparative analysis
Computer and Information Sciences
Contracts
Cost Sharing
Debt management
Debt restructuring
Decision making
Differential games
Equilibrium
External debt relief
Financial research
Game theory
Government
International finance
Local government
Methods
Optimization
Optimization models
Parameter sensitivity
People and places
Physical Sciences
Political aspects
Public finance
Sensitivity analysis
Small & medium sized enterprises-SME
Social Sciences
Strategy
Trajectory optimization
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Summary:This paper studies the debt restructuring equilibrium decision problem composed of creditors and debt enterprises with the participation of the government and asset management companies. With the differential game, the dynamic optimization models of debt restructuring under three situations: centralized decision-making, decentralized decision-making, and Stackelberg game after introducing cost-sharing contract are constructed, respectively. The optimal equilibrium strategy of debt restructuring, the optimal trajectory of debt restructuring synergy, and the optimal profit under three decision-making situations are investigated and compared. It is found that the synergy effect and total profit of debt restructuring are the highest under centralized decision-making, and the Stackelberg game is superior to decentralized decision-making, which shows that the cost-sharing contract can achieve the coordination of overall interests, improve the debt restructuring environment, and promote the debt restructuring process. Finally, the sensitivity analysis of relevant parameters is carried out through an example, which verifies the effectiveness of the conclusion and provides the scientific basis for the government and asset management companies to participate in debt restructuring successfully.
ISSN:1932-6203
1932-6203
DOI:10.1371/journal.pone.0284044