Renou, Ludovic - In: Economics Bulletin 28 (2002) 11, pp. 0-0
This paper generalizes a costly state verification model à la Townsend (1979) along two dimensions: 1) diversity of opinion and 2) endogenous formation of a financial intermediary, modeled as a multi-lender coalition. Main results are 1) lenders forming the coalition are neither too optimistic...