Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/150204 
Year of Publication: 
2013
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 8 [Issue:] 3 [Publisher:] The Econometric Society [Place:] New Haven, CT [Year:] 2013 [Pages:] 653-700
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
Reputation concerns in credit markets restrain borrowers' temptations to take excessive risk. The strength of these concerns depends on the behavior of other borrowers, rendering the reputational discipline fragile and subject to breakdowns without obvious changes in economic fundamentals. Furthermore, at an aggregate level, breakdowns are clustered among borrowers with intermediate and good reputations, magnifying otherwise small economic shocks.
Subjects: 
Reputation
global games
risk-taking
fragility
JEL: 
D82
E44
G01
G32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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