Review of Economic Design

, Volume 15, Issue 2, pp 163–175 | Cite as

Lender learning and entry under general demand uncertainty

  • Neelam JainEmail author
  • Leonard J. Mirman
Original Paper


In this paper, we examine the effect of potential entry on learning by a lender when the demand shock has a general distribution. We show that under this type of noise, entry does not lead to any changes in the equilibrium expected signals and therefore, there is no effect on learning by the lender, unlike the case when noise is uniformly distributed. The result holds even when contracts are not observable.


Entry Information Learning Contracts 

JEL Classification

D4 D8 


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Copyright information

© Springer-Verlag 2011

Authors and Affiliations

  1. 1.Department of EconomicsCity University LondonLondonUK
  2. 2.Department of EconomicsUniversity of VirginiaCharlottesvilleUSA

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