default rates, renegotiation, or loan rates individually, we study them together as equilibrium outcomes of the strategic … interaction between lenders and borrowers. We present a simple model of default and renegotiation where the degree of limited … default rates and renegotiation rates. Regarding loan pricing, while the model predicts higher interest rates for limited …

This paper investigates a model of default in financial networks where the decision by one agent on whether or not to … default impacts the incentives of other agents to escape default. Agents' payoffs are determined by the clearing mechanism … default game. Furthermore, we develop an algorithm to find all Nash equilibria that relies on the financial network structure …