market, and the bargaining power of its participants. Our analysis relies on the equilibrium concept of the core, which … bargaining power tilted sharply towards borrowers as the financial crisis progressed, and (surprisingly) towards riskier …

This paper examines bargaining as a mechanism to resolve information problems. To guide the analysis, I develop a …

encourage banking institutions to supply credit to the economy. Increased bank supply of credit is a good thing but too much of … signaling; (iii) managerial priority during a recession is to smooth credit over time rather than to boost credit supply; (iv …

We study the role of bargaining power and outside options with respect to the pricing of over-the-counter interbank … loans using a bilateral Nash bargaining model, and we test the model predictions with detailed transaction-level data from … the euro-area interbank market. We find that lender banks with greater bargaining power over their borrowers charge higher …