Hainz, Christa; Weill, Laurent; Godlewski, Christophe - In: Journal of Financial Services Research 44 (2013) 2, pp. 131-148
We investigate the impact of bank competition on the use of collateral in loan contracts. We analyze asymmetric information about the borrowers’ type in a Salop model in which banks choose between screening the borrower and asking for collateral. We show that the presence of collateral is more...
