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some collateral requirement for financial assets; second, information among players about the structure of uncertainty is …
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We provide a model of dynamic duopoly in which firms face financial constraints and disappear when they are unable to fulfill them. We show that, in some cases, Cournot outputs are no longer supported in equilibrium, because if these outputs were set, a firm may have incentives to ruin the...
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, even without collateral or legal sanctions available to creditors. In an incomplete asset market, when the rate of interest …
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