Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5089567 | Journal of Banking & Finance | 2013 | 14 Pages |
Abstract
⺠Strategic defaults due to coordination failure are observed in an experiment. ⺠Bank and borrower fundamentals affect the prevalence of strategic defaults. ⺠Loss aversion and negative past experiences reduce repayment. ⺠Low repayment rates after experiences of bank failures suggest contagion.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Stefan T. Trautmann, Razvan Vlahu,