Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5072486 | Games and Economic Behavior | 2009 | 17 Pages |
Abstract
In the presence of utility penalties, collateral requirements do not always eliminate the occurrence of Ponzi schemes. Harsh utility penalties may induce effective payments over collateral recollection values. In this event, loans can be larger than collateral costs and Ponzi schemes become possible.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Mário Rui Páscoa, Abdelkrim Seghir,