Martins-da-Rocha, Victor-Filipe; Vailakis, Yiannis - Université Paris-Dauphine (Paris IX) - 2012
We show, by means of an example, that in models where default is subject to both collateral repossession and utility … true even if default penalties are moderate as defined in Páscoa and Seghir (Game Econ Behav 65:270–286, 2009). In our … example, asset promises and default penalties are chosen such that, if an equilibrium does exist, agents never default on …