The Effect Of Power Factor On Transaction Price Of Financial Commodity

In social lives, the phenomenon of non-reciprocal on the endowment of resources and powerbetween economic entities is common. Considering the realities that the benefits distribution isaffected by the power structure between perpetrators, we believe that has the intrinsic link andlogical necessity between the resources, power and the distribution of benefits. In the market,distribution showed the possession relationship of interest, which in turn depends essentiallycommodity transaction price, the formation and change of transaction price reflects the marketparticipant's competition on the benefits in part. In other words, the influence and control to othereconomic entities formed in the resources controlled by economic entities, or economic power,could influence the market transactions and thus impact the distribution of benefits through thetrading price. This logic is not this subjective assumptions, it should be widely recognized.Based on the above ideas, this paper analyzes the affect of power factors on the options oftrading behavior, trading process and transaction prices. There's a need to clarify the fundamentalproblem is that our study is the transaction price and its influencing factors, rather than the valueor equilibrium price in traditional sense. By analyzing the meaning of power and the paradigm ofeconomic power, we point out the distribution function of the trading price, and analyze theoptions of trading behavior based on the perspective of interests competing, mathematical modelshows that power has significant impact on the transaction process and transaction price, and adetailed analysis is that the relationship between the different elements that constitute the powerand transaction price. These tentative study attempts to give a more realistic theoretical analysis ofeconomic life, and provide a theoretical reference on the in-depth study of economic power andinfluence. In summary, the content involved in this paper can be summarized as the following twoaspects:On the one hand is economic theory. First, we pointed out that the nature and effect ofmarket transaction prices specifically, the different of transaction price reflects the different ofdistribution relationship between transaction parties from the perspective of the benefitsdistribution, and elaborate clearly and completely the theoretical logic about resources, power tothe transaction price and benefits distribution. Second, we analyze the microstructure of financialmarkets, mean that the major participants of financial market, the resources, economic power,behavior of participants and impact on the transaction price, the purpose is that provide anideological basis for the analysis of the nature about financial commodity trading prices and buildmathematical models. Again, we analyze the exchange rate, interest rates and stock prices intheory, including the competing relationship and distribution nature of interests reflected bytrading price, and the trading prices decision theory and limitations about financial commodity,we also give a decision-making process of transaction price from our perspective, that is themodeling ideas in mathematical.On the other hand is mathematical modeling. First, we build mathematical model inaccordance with the above theoretical assumptions, and imitate the transaction price formationprocess in game theory mainly, including the improvement and re-interpretation of the traditionalmodel. Second, we solve the game model and analyze the nature of equilibrium solution, thefactors affecting transaction price and the mechanism of action was cleared in the process, and itsreal economic meaning was revealed, which is the significance of this study.We obtained the following main conclusions for the related content in this study:Firstly, affect of the resources and power factors on the options of trader's behavior, theprocess of market transactions and the transaction price is exist, which is derived corollary basedon rational economic agents is self-interest. Maximize the benefits is purpose of the options oftrader's behavior in the market trade process, so they will influence on market transactionsthrough resources and power, and achieve the target of interest. Secondly, transaction price has the distribution property. This paper points out that themarket transaction price with the duality, one that reflects the value information of goods or inpart, on the other hand that distribute the benefits, in the other words, the level of commoditytrading prices reflect the benefits obtained through the transaction, the adjustment in transactionprice lead to the change in earnings of both parties, so the transaction price has been alienated asthe tool of the interests competition and distribution between traders.Thirdly, the game between nations is important factors of the modern exchange ratedetermination. In the modern open economy, every country was interdependence in inter-statetrade, investment, employment and technology, and has the economic power of other countries,because to the competition of international economic interests, the game based on economicpower between countries will inevitably has an impact on the exchange rate.The model deductionshow that: the influence state of actual exchange rate relative to different parties is isomorphicwith the contrast state of different parties's economic power, that is the larger national economicpower, they will strive for more favorable result in change of actual exchange rate and obtainmore economic benefits ultimately.Fourthly, the pricing power of both lenders and borrowers will affect the market interest rate,the pricing power was mainly affected by the market structure and product type in the formalfinancial market, and related to the term and risk in the informal financial market. Market interestrate was not entirely determined by supply and demand from the perspective of the benefitscompetition, the game between economic entities will influence market interest rate.The modeldeduction show that: the micro-agents with the larger pricing power are dominant during thegame of interest rate decision, or the real market interest rate is conducive to the interests of thesubject with the larger pricing power.Finally, the resources of capital and information have an important effect on stock prices. Inthe stock market, some investors with superiority in capital and information could influence andcontrol the stock prices, and even change the expectations of small and medium investors, therebyaffect the market supply and demand and impact securities transactions price ultimately, in other words, some investors have the chance that influence benefits distribution in market and thus reapexcessive profits.