This paper analyzes the effect of stricter sanctions against fraudulent disclosure in an economy where commercial lenders have only an imperfect information about the type of the firm they trade with. In the hybrid Bayesian equilibrium, some managers running fragile firms claim that their firm...

This paper reports the results from a lab experiment in which subjects playing the manager role can implement either an efficient/inegalitarian allocation or an inefficient/egalitarian allocation of payoffs. The experiment simulates a stylized managerial context by allowing the manager to...