Acharya, Viral V. (contributor); Gromb, Denis (contributor); … - 2007
nature !, where ! is
uniformly distributed over [0;1], as detailed below.
At t = 1, with probability x, the asset needs some … assets to Bank B as, in this case, this is the most e�ective means of
transferring value to Bank B (Assumption 1).
@ @X
B …�E ( B).
@ @X
A
< 0 and @@
@
@XA
< 0, i.e., an increase in Bank A�s outside option leads to
less asset sales …