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Is it better to be mixed in group lending?

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Figure

Figure 1 – Underinvestment (homogeneous equilibria). a) Separating contracts.  b) Pooling contracts
Figure 2 – Underinvestment (potential homogeneous pooling equilibria). ab) Low θ (0CPOOLcloser to 0Css)
Figure 3 – Underinvestment and 0bau. ) Homogeneous separating and pooling joint liability equilibria do not exist
Figure 4 – Overinvestment (homogeneous separating equilibria). ab) LLC below (r,ˆc)ˆand above (r*,c*)
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