Contracting Sequentially with Multiple Lenders: The Role of Menus

B-Tier
Journal: Journal of Money, Credit, and Banking
Year: 2019
Volume: 51
Issue: 4
Pages: 977-990

Authors (4)

ANDREA ATTAR (Toulouse School of Economics (...) CATHERINE CASAMATTA (not in RePEc) ARNOLD CHASSAGNON (not in RePEc) JEAN PAUL DÉCAMPS (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study a credit market in which multiple lenders sequentially offer financing to a single borrower under moral hazard. We show that restricting lenders to post single offers involves a loss of generality: none of the equilibrium outcomes arising in this scenario survives if lenders offer menus of contracts. This result challenges the approach followed in standard models of multiple lending. From a theoretical perspective, we offer new insights on equilibrium robustness in sequential common agency games.

Technical Details

RePEc Handle
repec:wly:jmoncb:v:51:y:2019:i:4:p:977-990
Journal Field
Macro
Author Count
4
Added to Database
2026-01-24