Some aspects of game theory application in institutional economics

In conditions of unstable national economy and constantly increasing pressure on the Russian judicial system the role of conciliation mechanisms and their employment for the resolution of commercial disputes becomes crucial. One of such mechanisms is a mathematical model based on the game theory. The first part of the article presents some theoretical conclusions drawn by the authors on the basis of the research conducted within the frames of the new institutional economics incorporating major approaches to content and quantification of transaction costs on the market. The second part of the article is devoted to contemporary peculiarities of traditional (arbitration system) and alternative institutions’ (negotiation, mediation, arbitration court) development aimed at resolution of economic disputes in institutional economics of Russia. The third part is represented by a mathematical tool and a specific example (determination of the rent for the land in the Republic of Karelia) of the game theory employment when dividing resources. The example includes comparisons of litigation costs with the costs of negotiation. The use of the mathematical model based on the game theory resulted in the theoretical prognosis of the optimal solution for a disputable situation. The obtained prognosis also provided data on the minimal costs for parties involved in the dispute.