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Banking system is known to be vulnerable to self-fulfilling crises that are caused by depositors’ coordination failure …
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This paper studies how comparing can be used to provide information in financial markets in the presence of a hidden characteristics problem.Although an investor cannot precisely estimate the future returns of an entrepreneur's projects, the investor can mitigate the asymmetric information...
Persistent link: https://www.econbiz.de/10012147957
This paper studies how comparing can be used to provide information in financial markets in the presence of a hidden characteristics problem. Although an investor cannot precisely estimate the future returns of an entrepreneur’s projects, the investor can mitigate the asymmetric information...
Persistent link: https://www.econbiz.de/10005648914
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of information a§ects banksí cost of raising funding and asset proÖle riskiness. In an imperfectly competitive banking … competitive banking sector in which banksíasset risk taking is not too sensitive to the precision of information, the maximum …
Persistent link: https://www.econbiz.de/10012482825