Publications [#303014] of Adriano A. Rampini

Journal Articles

1. Bisin, A; Rampini, AA, Exclusive Contracts and the Institution of Bankruptcy (February, 2004)
   (last updated on 2026/01/18)

   Abstract:
   This paper studies the institution of bankruptcy when exclusive contracts cannot be enforced ex ante, e.g., a bank cannot monitor whether the borrower enters into contracts with other creditors. The institution of bankruptcy enables the bank to enforce its claim to any funds that the borrower has above a fixed â¬Sbankruptcy protectionâ¬? level. Bankruptcy improves on non-exclusive contractual relationships but is not a perfect substitute for exclusivity ex ante. We characterize the effect of bankruptcy provisions on the equilibrium contracts which borrowers use to raise financing.