Awaya, Yu; Fukai, Hiroki; Watanabe, Makoto - 2024
We compare Transparency and Privacy in credit markets. A long-lived borrower, who has a risky investment opportunity …, seeks loans from a sequence of short-lived lenders. Under Transparency, all the information about the past investment … shared under Privacy. We first show that under both Transparency and Privacy, the iterated elimination of dominated …