. Anticipation of this generates an equilibrium featuring systemic risk in which all banks choose inefficiently high leverage to fund …

We develop a basic framework to understand the organization of highly creative activities. Management faces a … creative talent. Procuring highly creative products in the market place, though, exposes the distributor to a fundamental risk …, distributors face the unavoidable winner's curse risk. Since this risk is, to a large extent, independent of the creative nature of …

risk in which all banks choose inefficiently high leverage to fund correlated assets and market discipline is compromised … ; systemic risk ; bailout ; forbearance ; moral hazard ; capital requirements …