Development of the decision making support system to control a procedure of financial investment

Authors

DOI:

https://doi.org/10.15587/1729-4061.2017.119259

Keywords:

decision support system, investing, financial capital, selection of strategy, game theory

Abstract

The model of continuous control of the procedure of mutual financial investment for the decision support system was proposed. The model makes it possible to optimize finding multi-variant strategies in mutual financial investment of projects. From the mathematical point of view, this model is based on solution of a bilinear differential quality game with multiple terminal surfaces. A specific feature of this game is that the right part of the system of differential equations is bilinear functions with arbitrary coefficients.

The model is implemented in the high-level language C++ in the software product "Decision support system for mutual investment – SSDMI", which was tested in a number of investment projects. The model allows solving the problem of improvement of effectiveness of the procedure of mutual financial investment for participants at different ratios of interaction parameters. There can be found a condition, under which the procedure of mutual financial investments becomes beneficial to all participants. Apparatus of the theory of differential games was proposed as a toolkit for development of an effective strategy for mutual financial investment. In the framework of this research, the process of interaction between an investor from one country and its counterparty from another country is explored. The selected approach enables us to identify the areas of possible initial states of resources (financial capitals) of interacting objects. The objects are supposed to have the following property: if interaction starts from these initial states, there can be a loss of financial capital either by one interacting party or the other at one of the moments of time.

Solution to the game lies in the identification of sets of preference of the parties and the strategies (control actions) of the parties, by applying which it is possible to obtain the outcomes, preferable for each side. Based on the findings, conclusions were made and recommendations were given to investors in terms of their subsequent actions with a view to obtaining the best possible outcome in terms of financial investment and a decrease in investment risks. 

Author Biographies

Valeriy Lakhno, European University Akademika Vernadskoho blvd., 16 v, Kyiv, Ukraine, 03115

Doctor of Technical Science, Professor

Department of Managing Information Security

Volodimir Malyukov, European University Akademika Vernadskoho blvd., 16 v, Kyiv, Ukraine, 03115

Doctor of Physical and Mathematical Sciences, Associate Professor

Department of Information Systems and Mathematical Disciplines

Nataliia Gerasymchuk, National Academy of Management Ushinskoho str., 15, Kyiv, Ukraine, 03151

Doctor of Economic Sciences, Associate Professor

Department of marketing, economics, management and administration 

Iryna Shtuler, National Academy of Management Ushinskoho str., 15, Kyiv, Ukraine, 03151

Doctor of Economic Sciences, Associate Professor

Department of finance, accounting and fundamental economic disciplines

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Published

2017-12-25

How to Cite

Lakhno, V., Malyukov, V., Gerasymchuk, N., & Shtuler, I. (2017). Development of the decision making support system to control a procedure of financial investment. Eastern-European Journal of Enterprise Technologies, 6(3 (90), 35–41. https://doi.org/10.15587/1729-4061.2017.119259

Issue

Vol. 6 No. 3 (90) (2017): Control processes

Section

Control processes

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Copyright (c) 2017 Valeriy Lakhno, Volodimir Malyukov, Nataliia Gerasymchuk, Iryna Shtuler

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