Acharya, Viral V. (contributor); Shin, Hyun Song (contributor) - 2007
stays at p; at least for a
while, and the price is higher than the price without outsiders, that is, p w(k) > p (k); which …, price
stays at p and the pro�t for a surviving bank from purchasing a unit of failed banks�asset is bounded by
( 1 … ); whereas a bank survives only with probability 0. Hence, as 0 decreases, the marginal gain from
holding the liquid asset goes …