Question: In Section 18.3, we briefly referred to three games: Playing for time, cash in and run, and bait and switch. For each game, construct a
In Section 18.3, we briefly referred to three games: Playing for time, cash in and run, and bait and switch. For each game, construct a simple numerical example (like the example for the risk-shifting game) showing how shareholders can gain at the expense of creditors. Then explain how the temptation to play these games could lead to costs of financial distress.
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