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Informational Contagion and the Entrepreneurial Production of Informational Remedies

Author

Listed:
  • Mathieu Bédard

    (CERGAM-CAE, Aix-Marseille Université)

Abstract

This article reassess informational financial contagion theory relevant to systemic risk in banking in the light of a coordination problem approach to economics, and then proceed to analyze and comment some related types of systemic risk policies. Typically, policies to limit or contain informational contagion place too much emphasis on disclosed explicit information search and neglect the circumstantial, ecological knowledge surrogates, stemming from the actions taken by market participants during informational contagion crises.

Suggested Citation

  • Mathieu Bédard, 2012. "Informational Contagion and the Entrepreneurial Production of Informational Remedies," CAE Working Papers 96, Aix-Marseille Université, CERGAM, revised Mar 2013.
    • Handle: RePEc:cgm:wpaper:96
    as

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    File URL: http://junon.u-3mrs.fr/afa10w21/RePEc/cgm/wpaper/DR_96_1213.Bedard.pdf
    File Function: Second version, 2013
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    References listed on IDEAS

    as
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    Cited by:

    1. Thorsten Beck & Michael Fuchs & Dorothe Singer & Makaio Witte, 2014. "Making Cross-Border Banking Work for Africa," World Bank Publications - Books, The World Bank Group, number 20248.

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    More about this item

    Keywords

    Financial Contagion; Bank runs; Information; Uncertainty;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G01 - Financial Economics - - General - - - Financial Crises
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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