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Multiple Equilibria in Markets with Screening

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ALEXIS DIRER

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Abstract

This paper adds endogenous screening to Broecker (1990) and shows the possibility of multiple screening equilibria. A high intensity of screening by a bank decreases average quality of firms applying to other banks, which in turn have further incentives to screen. The link between the degree of concentration of the banking industry and the extension of credit is also discussed. Copyright (c) 2008 The Ohio State University.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1538-4616.2008.00136.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.

Volume (Year): 40 (2008)
Issue (Month): 4 (06)
Pages: 791-798
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:mcb:jmoncb:v:40:y:2008:i:4:p:791-798

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879

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  1. Christa Hainz, 2008. "Bank competition - When is it Goog?," Discussion Papers 244, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
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