Semenova, M. - In: Journal of the New Economic Association (2011) 10, pp. 31-52
In this paper, we model the deposit market with costly information on bank risks. The model adds to the volume of … literature related to the Diamond-Dybvig mod-el and related models of information-based bank runs. The inclusion of costly infor-mation … signals indicates that depositors must decide whether to pay for information regarding changes in the riskiness of banking …
