Hubert, Franz; Schäfer, Dorothea - Universität <Berlin, Humboldt-Universität> / Chair … - 2001
In this paper we analyze how a firm might protect quasi-rents in an environmentof imperfect capital markets, where switching lenders is costly to the borrower, andcontracts are incomplete. As switching costs make the firm vulnerable to ex-postexploitation, it may want to diversify lending in...