Skip to main content
Unpublished Paper
The Mortgage Market Crisis: A Game Theory Analysis
ExpressO (2010)
  • Raquel Mato, Florida State University
Abstract

The mortgage market experienced a global bubble during the early 2000s. The bubble burst in 2006, creating a global financial crisis with widespread repercussions. In this paper, I will discuss how the mortgage market normally works and what changes occurred leading up to the 2000s that allowed for the rapid expansion of the mortgage market. I will talk about contributing factors such as: deregulation of the market, government encouragement of homeownership, the mortgage backed securities market, existing legislation, and a general lack of responsibility by all parties involved. I will use various aspects of game theory to explain how this crisis occurred and whether current and new legislation will help prevent a future bubble. I will also address what is still needed to help prevent or minimize a future bubble.

Keywords
  • mortgage,
  • game theory
Disciplines
Publication Date
September 28, 2010
Citation Information
Raquel Mato. "The Mortgage Market Crisis: A Game Theory Analysis" ExpressO (2010)
Available at: http://works.bepress.com/raquel_mato/1/