Article ID Journal Published Year Pages File Type
5089567 Journal of Banking & Finance 2013 14 Pages PDF
Abstract
► Strategic defaults due to coordination failure are observed in an experiment. ► Bank and borrower fundamentals affect the prevalence of strategic defaults. ► Loss aversion and negative past experiences reduce repayment. ► Low repayment rates after experiences of bank failures suggest contagion.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Strategic loan defaults and coordination: An experimental analysis
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