Banking (conservatively) with optimists

RAND Journal of Economics

Volumn 30, Issue 2, 1999, Pages 324-350

  Manove, Michael ^a   Padilla, A Jorge ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0033470824     PISSN: 07416261     EISSN: None     Source Type: Journal    
DOI: 10.2307/2556083     Document Type: Article

References (40)

1. AKERLOF, G.A. AND YELLEN, J.L. "Can Small Deviations from Rationality Make Significant Differences to Economic Equilibria?" American Economic Review, Vol. 75 (1985), pp. 708-720.
2. AUSUBEL, L.M. "The Failure of Competition in the Credit Card Market." American Economic Review, Vol. 81 (1991), pp. 50-81.
3. BARBERIS, N., SHLEIFER, A., AND VISHNY, R. "A Model of Investor Sentiment." Journal of Financial Economics, Vol. 49 (1998), pp. 307-343.
4. BERNARDO, A. AND WELCH, I. "On the Evolution of Overconfidence and Entrepreneurs." Anderson Graduate School of Management Working Paper no. 9/97, UCLA, 1997.
5. BESANKO, D. AND THAKOR, A.V. "Collateral and Rationing: Sorting Equilibria in Monopolistic and Competitive Credit Markets." International Economic Review, Vol. 28 (1987a), pp. 671-689.
6. _ AND _. "Competitive Equilibrium in the Credit Market Under Asymmetric Information." Journal of Economic Theory, Vol. 42 (1987b), pp. 167-182.
7. BESTER, H. "Screening vs. Rationing in Credit Markets with Imperfect Information." American Economic Review, Vol. 75 (1985), pp. 850-855.
8. CHAN, Y-S. AND THAKOR, A.V. "Collateral and Competitive Equilibria with Moral Hazard and Private Information." Journal of Finance, Vol. 42 (1987), pp. 345-364.
9. DANIEL, K., HIRSHLEIFER, D., AND SUBRAHMANYAM, A. "Investor Psychology and Security Market Under- and Overreactions." Journal of Finance, Vol. 53 (1998), pp. 1839-1885.
10. DE BONDT, W.F.M. AND THALER, R.H. "Financial Decision-Making in Markets and Firms: A Behavioral Perspective." In R. Jarrow et al., eds., Handbooks in Operations Research and Management, Vol. 9. Amsterdam: Elsevier Science, 1995.
11. DE LONG, J.B., SHLEIFER, A., SUMMERS, L.H., AND WALDMANN, R.J. "Noise Trader Risk in Financial Markets." Journal of Political Economy, Vol. 98 (1990), pp. 703-738.
12. _, _, _, AND _. "The Survival of Noise Traders in Financial Markets." Journal of Business, Vol. 64 (1991), pp. 1-20.
13. DE MEZA, D. AND SOUTHEY, C. "The Borrower's Curse: Optimism, Finance and Entrepreneurship." Economic Journal, Vol. 106 (1996), pp. 375-386.
14. FEINBERG, J. The Moral Limits of the Criminal Law, Vol. 3: Harm to Self. New York: Oxford University Press, 1986.
15. GROMB, D., MANOVE, M., AND PADILLA, A.J. "Entrepreneurial Optimism." Mimeo, Sloan School of Management, MIT, 1997.
16. GROPP, R., SCHOLZ, J.K., AND WHITE, M.J. "Personal Bankruptcy and Credit Supply and Demand." Quarterly Journal of Economics, Vol. 112 (1977), pp. 217-251.
17. HAGSTROM, R.G. The Warren Buffett Way. New York: J. Wiley, 1994.
18. HART, O. Firms, Contracts, and Financial Structure. Oxford: Clarendon Press, 1995.
19. HEATON, J. "Managerial Optimism and Corporate Finance." Mimeo, University of Chicago Graduate School of Business, 1997.
20. HIRSHLEIFER, D., SUBRAHMANYAM, A., AND TITMAN, S. "Security Analysis and Trading Patterns When Some Investors Receive Information Before Others." Journal of Finance, Vol. 49 (1994), pp. 1665-1698.
21. JACKSON, T.H. The Logic and Limits of Bankruptcy Law. Cambridge, Mass.: Harvard University Press, 1986.
22. JENSEN, M.C. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers." American Economic Review Papers and Proceedings, Vol. 76 (1986), pp. 323-329.
23. KYLE, A.S. AND WANG, F.A. "Speculation Duopoly with Agreement to Disagree: Can Overconfidence Survive the Market Test?" Journal of Finance, Vol. 52 (1997), pp. 2073-2090.
24. MANOVE, M. "Entrepreneurs, Optimism and the Competitive Edge." Mimeo, Department of Economics, Boston University, 1998.
25. MYERS, S. "Determinants of Corporate Borrowing." Journal of Financial Economics, Vol. 5 (1977), pp. 147-175.
26. ODEAN, T. "Volume, Volatility, Price and Profit When All Traders Are Above Average." Journal of Finance, Vol. 53 (1998), pp. 1887-1934.
27. POSNER, R.A. The Economic Analysis of Law, 4th ed. Boston: Little, Brown, 1992.
28. RITTER, J.R. "The Long-Run Performance of Initial Public Offerings." Journal of Finance, Vol. 46 (1991), pp. 3-27.
29. ROLL, R. "The Hubris Hypothesis of Corporate Takeovers." Journal of Business, Vol. 59 (1986), pp. 197-216.
30. ROSS, L. AND ANDERSON, C.A. "Shortcomings in the Attribution Process: On the Origins and Maintenance of Erroneous Social Assessments." In D. Kahneman, P. Slovic, and A. Tversky, eds., Judgment Under Uncertainty: Heuristics and Biases. New York: Cambridge University Press, 1982.
31. SMITH, A. An Inquiry into the Nature and Causes of the Wealth of Nations. New York: Modern Library, 1937.
32. SMITH, C.W. JR. AND WARNER, J.B. "On Financial Contracting: An Analysis of Bond Covenants." Journal of Financial Economics, Vol. 7 (1979), pp. 117-161.
33. STIGLITZ, J.E. AND WEISS, A. "Credit Rationing in Markets with Imperfect Information." American Economic Review, Vol. 71 (1981), pp. 393-410.
34. _ AND _. "Sorting Out the Differences Between Signaling and Screening Models." In M.O.L. Bacharach, M.A.H. Dempster, and J.L. Enos, eds., Mathematical Models in Economics: Oxford University Mathematical Economic Seminar 30th Anniversary Volume. Oxford: Clarendon Press, 1999.
35. STULZ, R.M. AND JOHNSON, H. "An Analysis of Secured Debt." Journal of Financial Economics, Vol. 14 (1985), pp. 501-522.
36. TAYLOR, S.E. Positive Illusions: Creative Self-Deception and the Healthy Mind. New York: Basic Books, 1989.
37. THALER, R.H., ED. Advances in Behavioral Finance. New York: Russell Sage Foundation, 1993.
38. TREBILCOCK, M.J. The Limits of Freedom of Contract. Cambridge, Mass.: Harvard University Press, 1993.
39. WALDMAN, M. "Systematic Errors and the Theory of Natural Selection." American Economic Review, Vol. 84 (1994), pp. 482-497.
40. WANG, F.A. "Strategic Trading, Asymmetric Information and Heterogeneous Prior Beliefs." Journal of Financial Economics, forthcoming.