We study the problem of loan enforcement in an informal credit market where credit histories of borrowers are not available to lenders, raising the possibility of serial default. We show that if there is critical minimum proportion of natural defaulters in the populatin, then there exists an...

This paper attempts to explain the observed diversity of agricultural con- tracts within close-knit geographical regions, often within the same village. The explanation rests on two main assumptions: heterogeneity in land quality, with landlords being better informed about the quality of their...

We study cooperative behaviour in communities where the flow of information regarding past conduct is limited or missing. Players are initially randomly matched with no knowledge of each other's past actions; they endogenously decide whether or not to continue the repeated relationship. There is...