conduct investigations in the search of qualified loan borrowers. The model assumes that the domestic bank has a cost … advantage in evaluating a borrower’s credit quality compared to the competing foreign bank. Despite the cost heterogeneity, an … equilibrium exists in which two such banks coexist in the market. Specifically, the information cost advantaged bank orchestrates …

on existing theories of competition in markets with adverse selection. -- Asymmetric information ; competition ; adverse …

This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a …-dependent exit options for agents. In contrast to screening models with perfect competition, we find that existence of equilibria … that the efficiency of variable pay depends on the degree of competition for agents: For small degrees of competition, low …

This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a … high degrees of vertical differentiation, i.e. low competition, low-ability agents are under-incentivized and exert too … little effort. For high degrees of competition, high-ability agents are over-incentivized and bear too much risk. For a range …

This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a … high degrees of vertical differentiation, i.e. low competition, low-ability agents are under-incentivized and exert too … little effort. For high degrees of competition, high-ability agents are over-incentivized and bear too much risk. For a range …

This paper proposes a framework to analyze the functioning of the inter-bank liquidity market and the occurrence of … derive two main results. First inter-bank market collapse is an equilibrium. Second such an equilibrium is more likely when … (i) the individual probability of the liquidity shock is lower, (ii) ex ante competition between banks on illiquid long …

This paper addresses the topic regarding the desirability of competition in banking industry. In a model where banks … investigate three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks …' stability? What can be devices to correct potential negative effects of competition vis à vis financial stability? We find that …

screened and excessive in good times, and is inefficiently rationed during recessions. More bank competition exacerbates the …

This paper addresses the desirability of competition in banking industry. In a model where banks compete on both … three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks' stability …? What can be devices to correct potential negative effects of competition vis à vis financial stability? We find that …