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Risque de défaut et concurrence sur le marché des produits

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  • Nicolas Le Pape

Abstract

The strategic impact of debt on the firms? behavior in the product market was originally investigated by Brander and Lewis [1986]. They have shown that debt increases the level of competition in the industry. However, the lending policy of an increasing number of banks is based on an assessment of the borrower?s ability to repay the loan (scoring methods). The objective of this paper is to revisit models developed in Industrial Organization which focus on the strategic function of debt by recognizing a strategic function to the risk of default. We show that the strategic use of a default risk (instead of a level of debt) makes the firm more aggressive in the product market. Classification JEL : G32, L13, L22.

Suggested Citation

  • Nicolas Le Pape, 2015. "Risque de défaut et concurrence sur le marché des produits," Revue économique, Presses de Sciences-Po, vol. 66(6), pages 1089-1104.
    • Handle: RePEc:cai:recosp:reco_pr2_0051
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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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