We construct a synthesized model to study credit rationing by loan size. In our model, the borrower faces a trade-off between raising debt and exerting costly effort to undertake an investment project. In the absence of agency costs, increasing the loan size at the equilibrium interest rate...

Background : With the development of world economic globalization and the advent of the sharing economy era, the competition is not existed between individual enterprises any more, while upgraded to be the competition and cooperation among partners. It is difficult for enterprises to obtain...