Optimal Fragile Financial Networks
Abstractthe structure of the decentralized financial network is equal to the efficient one, yielding an expected payoff arbitrarily close to the efficient one. However, the investment decision is not the same. That is, in the decentralized network some banks will gamble as compared to the socially preferred outcome.
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Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2008 Meeting Papers with number 658.
Date of creation: 2008
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