evolution of the firm' Earning Before Interest and Taxes (EBIT). This framework is further enhanced by the game theory analysis … structures of the company and its default probability dependent on the changes in the risk-free interest rate, which may also …

asset liquidity risk arises even under minimal fundamental risk. To study the role of illiquidity we introduce realistic … not available in a run, asset liquidity risk has a concave effect on run incentives, quite unlike fundamental risk. Runs …Can the risk of losses upon premature liquidation produce bank runs? We show how a unique run equilibrium driven by …