Asymmetric Information and Credit Rationing in a Model of Search

Cemil Selcuk

Games, 2025, vol. 16, issue 1, 1-14

Abstract: This paper presents a competitive search model focusing on the impact of asymmetric information on credit markets. We show that limited entry by lenders results in endogenous credit rationing, which, in turn, plays a key role in managing adverse selection and prevents the credit market from collapsing.

Keywords: asymmetric information; credit rationing; directed search (search for similar items in EconPapers)
JEL-codes: C C7 C70 C71 C72 C73 (search for similar items in EconPapers)
Date: 2025
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Working Paper: Asymmetric Information and Credit Rationing in a Model of Search (2024)
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