Predation due to adverse selection in financial markets

Article Abstract:

In a competitive market, an entrant alleviates adverse selection problems in financial contracting by conditioning its own survival on financial marketsE future assessments. An incumbent may then move to adversely effect the assessments and ensure the entrantEs exit possibly. The study examines optimal financial contracting both under predatory threat and in its absence. A new finding is that suboptimal contracts in the absence of predatory threats eventually deter predation.

Competition (Economics), Study and teaching, Market entry

---

Monitoring and market power in credit markets

Article Abstract:

An inverse relation exists between both banks' investments in monitoring as well as average loan interest rates and credit losses and banks' investments in monitoring. It is also found that managing money transactions of customers enables banks to better control risks in their lending.

Asset & Risk Management, Evaluation, Risk management, Bank investments, Bank management

---

Nonlinear price discrimination with a finite number of consumers and constrained recontracting

Article Abstract:

The pricing policy adopted by a monopolist in two select situations, when selling to a large or infinite number of consumers and a small number of customers where the monopolist knows the exact distribution types, are examined.

Monopolies, Consumers, Price fixing, Market domination, Market share

Similar abstracts:

• Abstracts: On the inverse problem of linear programming and its application to minimum weight perfect k-matching
• Abstracts: Ship maintenance scheduling by genetic algorithm and constraint-based reasoning. A linear time approximation algorithm for movement minimization in conveyor flow shop processing
• Abstracts: Market orientation, relationship marketing orientation, and business performance: the moderating effects of economic ideology and industry type
• Abstracts: EU nations are split over bird-flu vaccination. Domestic demand fuels Eastern Europe growth. Skoda and Eastern Europe adopt 'frontier capitalism'
• Abstracts: How to find seamounts not on charts. Norway gear-maker expands in Iceland. Blue whiting deal in sight

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.