DeYoung, Robert; Kowalik, Michal; Reidhill, Jack - In: Journal of Financial Stability 9 (2013) 4, pp. 612-627
We model the failed bank resolution process as a repeated game between a utility-maximizing government resolution authority (RA) and a profit-maximizing banking industry. Limits to resolution technology and political/economic pressure create incentives for the RA to bail out failed complex...