Coco, G.; Meza, D. De; Pignataro, G.; Reito, F. - Dipartimento di Scienze Economiche, Alma Mater … - 2013
Can a bank increase its profit by subsidizing inactivity? This paper suggests this may occur, due to the presence of hidden information, in a monopolistic credit market. Rather than offering credit in a pooling contract, a monopolist bank can sort borrowers through an appropriate subsidy to...