Abstract
This paper demonstrates that ex post bailouts prompted by a noncontractible signal of output can lead to ex ante tacit collusion. The possibility of being bailed out whenever they fail can decrease the incentives of agents to do a good job in the first place.
Cite
CITATION STYLE
APA
Arya, A., & Glover, J. (2006). TRACKS: Bailouts and unwanted coordination. Journal of Accounting, Auditing and Finance, 21(1), 109–117. https://doi.org/10.1177/0148558X0602100107
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