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Authors
Advisor(s)
Abstract(s)
This paper presents a model of predation based on reputational differences between the entrant and an incumbent. While the incumbent has an established reputation in the debt market, the entrants’s quality is not yet known in the debt market. We show that the incumbent may have incentives to prey in order to interfere with the “reputation acquisition” of the entrant.
Description
Keywords
Asymmetric information Financing costs Predation Reputation
Pedagogical Context
Citation
Pires, Cesaltina Pacheco (2003). "Predation and reputation acquisition in debt markets". Portuguese Economic Journal, 2(1):1-21
Publisher
Springer Verlag