Financial Intermediation with Proprietary Information

Sudipto Bhattacharya

CEPR Financial Markets Paper from European Science Foundation Network in Financial Markets, c/o C.E.P.R, 33 Great Sutton Street, London EC1V 0DX.

Abstract: I contrast equilibria in loan markets under bilateral bank- borrower relationships, in which proprietary technological knowledge of borrowers is not revealed to product-market competitors, with equilibria under multilateral financing which may lead to such knowledge being shared across product-market competitors. I examine the conditions for equilibrium existence, ex ante efficiency, and incentives to undertake privately-financed, costly knowledge-generating R&D, under these two differing institutional mechanisms for financing R&D-intensive investments by firms competing in product markets.

Keywords: Intermediation; Proprietary Knowledge; Disclosure (search for similar items in EconPapers)
Date: 1992-10
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Financial Intermediation with Proprietary Information (1993)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprfm:0021

Ordering information: This working paper can be ordered from

The price is 4.00 pounds or 8.00 dollars per paper.

Access Statistics for this paper

More papers in CEPR Financial Markets Paper from European Science Foundation Network in Financial Markets, c/o C.E.P.R, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().