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 …

The effects of bank competition and institutions on credit markets are usually studied separately although both factors … are interdependent. We study the effect of bank competition on the choice of contracts (screening versus collateralized … effects of bank competition on collateralization, access to finance, and social welfare depend on the institutional …

The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank …-firm relationship and show that the bank's decision to liquidate bad firms has two opposing effects. First, the bank gets a payoff if a …

informational problems. We show that, as a consequence of this trade-off, more intense competition in unregulated segments of the … can lead to a softer merger policy when competition is weaker. …

We study political competition in an environment in which voters have private information about their preferences. Our …