The emergence of information sharing in credit markets

Details

Serval ID
serval:BIB_EBBC017E4D24
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
The emergence of information sharing in credit markets
Journal
Journal of Financial Intermediation
Author(s)
Brown  M., Zehnder  C.
ISSN
1042-9573
Publication state
Published
Issued date
04/2010
Peer-reviewed
Oui
Volume
19
Number
2
Pages
255-278
Language
english
Abstract
We provide the first systematic empirical analysis of how asymmetric information and competition in the credit market affect voluntary information sharing between lenders. We study an experimental credit market in which information sharing can help lenders to distinguish good borrowers from bad ones. Lenders may, however, also lose market power by sharing information with competitors. Our results suggest that asymmetric information in the credit market increases the frequency of information sharing between lenders significantly. Stronger competition between lenders reduces information sharing. In credit markets where lenders may fail to coordinate on sharing information, the degree of information asymmetry, rather than lender competition, drives actual information sharing behavior.
Keywords
Competition, Countries
Web of science
Create date
19/03/2009 15:53
Last modification date
21/08/2019 5:13
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