compensation. The model combines multitasking and screening, embedded into a Hotelling-like framework. Competition for the most …

We analyze a standard environment of adverse selection in credit markets. In our environment, entrepreneurs who are …

We study the tension between competitive screening and contract enforcement where a principal trades repeatedly with … relational contracting. We simultaneously characterize optimal relational contracts and competitive screening policies which are … interdependent. When non-contractible dimensions are important, the principal optimally restricts competitive screening to a subset …

market equilibria in which cheap credit is inappropriately emphasized over project screening. Restrictions on collateral …Many economists argue that the primary economic function of banks is to provide cheap credit, and to facilitate this … economic function: through project screening they can reduce the number of project failures and thus mitigate their private and …

We examine the role of security design when lenders make inefficient accept-or-reject decisions after screening … to the screening outcome: borrowers are either accepted, in which case they all obtain the same loan terms, or rejected. …