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 … show that an efficient bank run is the only equilibrium even in case of non-negative information costs. To ensure the …
