Pooling (II)
k + 02
Separating
k + 01-
Separating
Pooling (1)
p _PH
, PH
RI
k + 02-
Pooling (1)
k + O1
Pooling (II)
pr
H FI
Figure B-1. Graphs of possible equilibrium cases
p = 2(e2el). All graphs correspond to the possible cases that can occur during the first period of a borrowers' search
process. The interest rate graphed corresponds to the offer received by the lender with an H observation in the graphs I
and III, and by the lender with an L observation in the graphs II and IV.
k + 02
k + O1
I
k + 02t
k + O1
# pf
m pr