Asimmetric Information, Signalling And Competitionin in The Credit Market

Dini Federico
CEIS Working Papers
This paper examines how credit market structure affects signalling under asymmetric information between banks and firms. In particular, it is shown that competition can be inconsistent with separating equilibria and, in turn, with effcient pricing rules.
Number: 186
Date: Wednesday, January 1, 2003
Revision Date: Wednesday, January 1, 2003