Dynamic Pricing Under Debt: Spiraling Distortions and Efficiency Losses
نویسندگان
چکیده
منابع مشابه
Online Appendix Dynamic Pricing under Debt: Spiraling Distortions and Efficiency Losses A Model with Nonzero Limited Liability
Our base model assumed zero liability under debt, so that the DM’s objective was given by E [ (R(p)− B)+ ] . In practice, failing to repay the debt often carries negative consequences for a borrower due to, e.g., recourse by the lender (Wells Fargo, 2016), or bankruptcy/reputation costs when the firm goes into default. To capture this limited (but nonzero) liability, we now assume that a DM fac...
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ژورنال
عنوان ژورنال: Management Science
سال: 2018
ISSN: 0025-1909,1526-5501
DOI: 10.1287/mnsc.2017.2862