Arbeitspapier
Asymmetric information and the market structure of the venture capital industry
In this paper we study a horizontally differentiated market for financial in-termediation and develop a simple explanation for concentration in the financial intermediation industry. We show that under asymmetric information, if the demand for funds is not perfectly elastic, the heterogeneity of entrepreneurs in need of financing translates into a barrier to entry. That is, we do not need to resort to learning, weak property rights or exogenous costs of entry to generate this result.
- Language
-
Englisch
- Bibliographic citation
-
Series: ETLA Discussion Papers ; No. 768
- Classification
-
Wirtschaft
Asymmetric and Private Information; Mechanism Design
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Subject
-
venture capital
asymmetric information
entry
market structure
Risikokapital
Marktstruktur
Asymmetrische Information
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Hyytinen, Ari
Toivanen, Otto
- Event
-
Veröffentlichung
- (who)
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The Research Institute of the Finnish Economy (ETLA)
- (where)
-
Helsinki
- (when)
-
2001
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hyytinen, Ari
- Toivanen, Otto
- The Research Institute of the Finnish Economy (ETLA)
Time of origin
- 2001
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