Current decision-making models assume that an individual's attitude towards risk does not vary across different sources. A decision maker's processing of known probabilities and the resulting degree of probability weighting should therefore be unique. This paper provides evidence that challenges...

This paper studies how organizational downsizing in a bank affects loan officer specialization and the credit default risk of small and medium-sized enterprises. We exploit a wave of early loan officer retirements as a quasi-natural experiment, in which the resulting borrower reallocations...

We investigate whether and how business credit information sharing helps to better assess the default risk of private firms. Private firms represent an ideal testing ground because they are smaller, more informationally opaque, riskier, and more dependent on trade credit and bank loans than...