Attached to this post are the notes Zaara, Huichun, and Zhixia made on “Credit Rationing in Markets with Imperfect Information” by Joseph E. Stiglitz, and Andrew Weiss. This paper provides a theoretical justification for credit rationing in equilibrium and the results of the paper can be applied to a number of other principal-agent problems. Please read more about the paper in the attached notes.
Credit Rationing in Markets with Imperfect Information
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