Asymmetric information and credit rationing in a model of search

This paper presents a competitive search model focusing on the impact of asymmetric information on credit markets. We show that limited entry by lenders results in endogenous credit rationing, which, in turn, plays a key role in managing adverse selection and prevents the credit market from collapsing.

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Year of publication:	2024
Authors:	Selcuk, Cemil
Publisher:	Cardiff : Cardiff University, Cardiff Business School
Subject:	Asymmetric Information \| Credit Rationing \| Directed Search

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Series:	Cardiff Economics Working Papers ; E2024/25
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1912310619 [GVK]
Classification:	D82 - Asymmetric and Private Information ; D43 - Oligopoly and Other Forms of Market Imperfection ; G20 - Financial Institutions and Services. General
Source:	EconStor

Persistent link: https://www.econbiz.de/10015193959