Here, we study vertical foreclosure in a dynamic setup with learning-by-doing production technologies. There is a … prices; we find that customer foreclosure may arise in equilibrium when the products are close substitutes and be welfare …

constraints. During housing busts, longer selling times spill over into higher foreclosure risk, thereby magnifying the response …, the reverse occurs. Based on these insights, I consider a foreclosure reform that makes all mortgages full recourse, and I …