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threat of entry; andthere are parameter values for which the bank makes more profits with the threat of entry thanwithout. … market decisions in the face of the threat of entry, in a dynamic model.The main results of the paper are: there exists a … separating equilibrium with no limit pricing; thelow-cost incumbent repays more to the bank in the first period, due to the …
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threat of entry; and there are parameter values for which the bank makes more profits with the threat of entry than without …In this paper, we analyze the interaction between an incumbent firm's financial contract with a bank and its product … market decisions in the face of the threat of entry, in a dynamic model. The main results of the paper are: there exists a …
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broad suite of principles applicable to various elements of the financial intermediation chain. After indentifying where … of a diversified non-bank investor base for securitization in Europe. …
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deposit insurance, namely avoiding banking crises and protecting small depositors. The paper also addresses the related … question : why do banks fund loans with both equity and demand deposits ? The model determines the optimal bank capital … structure. In comparison with a Diamond-Dybvig bank which funds loans with demand deposits only, a capitalized financial …
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