RKM- Nash Base Equilibrium and Inflation Driven by Equity Buybacks

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-09-09
DOI
https://doi.org/10.5281/zenodo.22672973
Primary Topic
Economic theories and models
Type
article
Field-Weighted Citation Impact
0.00
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article

RKM- Nash Base Equilibrium and Inflation Driven by Equity Buybacks

Małek Rafal Krytsian
Zenodo (CERN European Organization for Nuclear Research)
Economic theories and models
article

RKM- Nash Base Equilibrium and Inflation Driven by Equity Buybacks

Małek Rafal Krytsian
article en

Abstract

"Nash Equilibrium and Inflation Driven by Equity Buybacks" presents a game-theoretic model in which large firms/financial institutions choose between productive investment and equity buybacks. It shows that under Nash equilibrium, buybacks become the rational strategy for every firm — since they push up stock prices, expand collateral value, and increase access to leverage. This drives asset-based inflation (rather than wage-based inflation): rising asset prices → more collateral → more credit creation → monetary expansion. The model introduces an "amplification factor" (Λ) — when it exceeds 1, the system becomes a self-reinforcing bubble, which (using logistic-growth and phase-transition equations) eventually leads to a finite-time price collapse. Conclusion: what's individually rational for each firm (maximizing buybacks and leverage) is destabilizing for the system as a whole — a classic coordination failure, where capital flows away from the real economy and into financial engineering.

Zenodo (CERN European Organization for Nuclear Research)
Decent work and economic growth
Openalex Percentile: Top 5%
Economic theories and models
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RKM- Nash Base Equilibrium and Inflation Driven by Equity Buybacks — Małek Rafal Krytsian · Zenodo (CERN European Organization for Nuclear Research) (2026) | TGRS Research Map | TGRS