Martins-da-Rocha, V.; Vailakis, Yiannis - In: Annals of Finance 8 (2012) 4, pp. 455-488
We show, by means of an example, that in models where default is subject to both collateral repossession and utility punishments, opportunities for doing Ponzi schemes are not always ruled out and (refined) equilibria may fail to exist. This is true even if default penalties are moderate as...