Interbank Market Integration under Asymmetric Information

Production Technology, Information Technology, and Vertical Integration under Asymmetric Information

document source, incluant la notice ©. Short sections may be quoted without explicit permission, if full credit, including © notice, is given to the source. Les cahiers de la série scientifique (CS) visent à rendre accessibles des résultats de recherche effectuée au CIRANO afin de susciter échanges et commentaires. Ces cahiers sont écrits dans le style des publications scientifiques. Les idées ...

Control of Interbank Contagion Under Partial Information

From market failures to market opportunities: managing innovation under asymmetric information

This article presents a review of the literature that focuses on the role played by information asymmetry in the management of innovation. Results are organised in two categories. On the one hand, information asymmetry is considered as a major source of market failures because it affects the quality of innovative goods and services available on the market and disturbs the process of allocating ...

Optimal Control of Interbank Contagion under Complete Information

We study a preferred equity infusion government program set to mitigate interbank contagion. Financial institutions are prone to insolvency risk channeled through the network of interbank debt and to the risk of bank runs. The government seeks to maximize, under budget constraints, the total net worth of the financial system or, equivalently, to minimize the dead-weight losses induced by bank r...

Dynamic Investment under Asymmetric Information

TAbstract T—This paper develops a tractable real options framework to analyze the effects of asymmetric information on firms' investment decisions when firms issue equity to finance investment. We assume that firm insiders exactly know the firms' growth prospects, but outside investors do not know. Our analysis shows that, under equity financing, the corporate insiders can signal their private ...