Seminario 15/19: N. Allouch (U. London) – Policy reform in networks: the interbank liquidity game

networking

Abstract This paper studies the interbank liquidity game where banks are located on a network and may access their direct neighbors’ liquidity holdings. We investigate patterns and directions of welfare-improving transfers in arbitrary networks. More specifically, we use a geometric approach to characterise two general cases – where the welfare improvement is accompanied by a…

Seminario 14/20 – Luis CORCHON (UC3M): Dynamic Contests with Bankruptcy: The Despair Effect

bankruptcy

Abstract In this paper we analyze a two period contest in which agents may become bankrupt at the end of the first period. A bankrupt agent is excluded from the contest in the second period of the game. We investigate the existence of a subgame perfect equilibrium in pure strategies. We distinguish between a borrowing…