“trust game” in parallel with a finitely repeated “microcredit game.” There are two agent types: “regular” and “trustworthy … (modeled by the level of trust) in the community where the group lending programs are located. Agents play a finitely repeated … conditions under which the presence of trust as an equilibrium of the trust game can enhance the success of the group lending …

In recent years, microfinance institutions have expanded into group lending with individual liability, leaving out the … repay a group loan to safeguard their reputation. We show that the introduction of group loans with individual liability … importance to their reputation will select into individual liability loans, causing default rates and interest rates to rise for …

Group liability is often portrayed as the key innovation that led to the explosion of the microcredit movement, which …

Group liability in microcredit purports to improve repayment rates through peer screening, monitoring, and enforcement …