Credit rationing arising out of informational asymmetry and lack of collateral has been an established economic constraint. These constraints are magnified for small businesses. We have made an attempt to capture the dimension of trustworthiness (calculative trust) by designing a multi-period...

Credit rationing arising out of informational asymmetry and lack of collateral is a well-recognised economic constraint in the credit market. These constraints get magnified for small businesses. This paper attempts to capture the dimension of trustworthiness (calculative trust) by designing a...

Paper models lender's decision based on project riskiness, trust from borrower's socioeconomic network, and social cost of default for the borrower. The paper suggests a methodology to estimate aggregate level of trustworthiness of borrower in socio-economic network. Our model links the social...