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The probability that actors in economic relationships break rules increases with the profits they thus expect to earn. It decreases with the probability and level of short- and long-term losses resulting from disclosure. It also decreases with the level of social context factors and intrinsic...
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This paper considers price competition in a duopoly with quality uncertainty. The established firm (the `incumbent') offers a quality that is publicly known; the other firm (the `entrant') offers a new good whose quality is not known by some consumers. The incumbent is fully informed about the...
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proposes a model of equilibrium maturity choice with asymmetric information and endogenous roll-over risk. We show that in the …-over risk in order to minimize price distortions. Short-term financing is socially desirable when banks' capacity to repay short … downgrade face sufficiently high roll-over risk, the equilibrium maturity structure approaches the constrained efficient …
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