In Which Context is the Option Clause Desirable?

Mathieu Bédard (1)

1 GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille

The option clause is a contractual device from free banking experiences meant to prevent banknote redemption duels. It has been used within the Diamond and Dybvig (J Pol Econ 91: 401–419, 1983) framew

Keywords: Bank runs; Financial stability; Free banking; G21; G33; Insolvency; N23; Option clause

Domains: Humanities and Social Sciences; Humanities and Social Sciences; Economics and Finance

Mathieu Bédard. In Which Context is the Option Clause Desirable?. Journal of Business Ethics, 2016, 139 (2), pp.287--297. ⟨10.1007/s10551-015-2611-7⟩. ⟨hal-01446221⟩